U.S. West Texas Intermediate crude oil futures are trading higher on Friday with the market hovering slightly below highs not seen since November 21.
The market is being boosted by optimism over the higher-level trade talks between the United States and China that were completed on January 31. Also underpinning the market is strong adherence to the OPEC-led supply cuts during January.
Prices are also being supported on Friday by a stronger-than-expected headline payrolls number that indicates strength in the labor market and solid ISM Manufacturing PMI data, which indicates strong factor demand.
Throughout the week, a number of events fueled a two-sided trade including a tightening of U.S. supply and the announcements of U.S. sanctions against Venezuela. Weak manufacturing PMI data from China also weighed on prices as well as a dovish outlook by the U.S. Federal Reserve.
Positive Spin on U.S. – China Trade Talks
Helping to support prices late in the week is the upbeat tone in the markets following the two-day high level trade talks between the United States and China.
On Thursday, President Trump said he would meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as the top U.S. negotiator reported “substantial progress” in the two days of high-level talks, CNBC said.
OPEC and its Allies are Following Through on Their Pledge
WTI prices rose to a two month high on Thursday after…