Oil price oozes 4% on renewed trade deal hope, but posts weekly decline

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Oil price oozes 4% on renewed trade deal hope, but posts weekly decline

On Friday, the 1st of November 2019, both US and UK crude oil futures’ prices climbed roughly 4 per cent following signs of progress in a Sino-US trade deal alongside a better-than-anticipated economic data in both of the countries, as a modest non-farm payroll report in the United States alongside China’s manufacturing activity figures had added to investors’ optimism.

On Friday’s (November 1st) market closure, the UK crude future wrapped up the session with a gain of 3.5 per cent to $61.69 per barrel, but scored a weekly decline of 0.4 per cent, while the US West Texas Intermediate crude futures’ prices soared 3.7 per cent on Friday’s (November 1st) market closure to $56.20 per barrel, nonetheless, posted a weekly drop of 0.8 per cent.

In point of fact, Friday’s (November 1st) crude oil rally was almost entirely prodded by separate statements from the US and China with both of which citing meaningful progress in top level trade talk, while a top White House official said that a deal could be reached as early as this month.

Meanwhile, referring to a strong market reaction to trade talk headlines, a partner at Again Capital Management in New York, John Kilduff said on Friday’s (November 1st) market wrap up, “You’re going to get a strong reaction from what seems like a deal for now.

This markedly improves the outlook for the global economy – particularly in Asia where it has suffered the most from the fallout from the trade war. ”