U.S. West Texas Intermediate crude oil futures are trading at their highest level since September 17 on Friday. The market is also in a position to finish about 1.30% higher for the week. That’s a pretty impressive number because just two days ago, crude oil was trading about 7% lower.
This week’s whip-saw price action has been fueled by renewed concerns over a U.S.-China trade deal, which weighed on demand growth, a bearish American Petroleum Institute (API) weekly inventories report, followed by a bullish U.S. Energy Information Administration (EIA) weekly inventories report, and a jump in expectations that OPEC and its allies would extend their production cut program.
US-China Trade Deal Confusion
Risk sentiment has seesawed all week amid mixed signals on whether Washington and Beijing can work out at least a partial deal to end trade-related tensions between the world’s two largest economies.
Earlier in the week, President Trump said the United States would raise tariffs on Chinese imports if no deal is reached with Beijing to end the trade war.
On Thursday after a report in the South China Morning Post said the United States could delay tariffs on Chinese imports even if a deal has not been reached by December 15, when tariffs kick in on goods including electronics and Christmas decorations.
Separately, Chinese Vice Premier Liu He, also the chief trade negotiator, said he was “cautiously optimistic” on…