- Oil prices rise on easing energy demand concerns.
- Investors continue to assess phase-one US-China trade deal.
- Coming up: API’s weekly US crude oil inventory report.
Crude oil extended its rally into the fourth trading day on Tuesday with the barrel of West Texas Intermediate rising to its highest level since September 17 at $61.04. As of writing, the WTI was up 1.15% on the day at $60.90.
Upbeat energy demand outlook supports crude oil’s rally
Earlier in the day, US Trade Representative (USTR) Robert Lighthizer told Fox Business Network that China’s purchases of agricultural products from the US will double as part of the phase-one trade deal to ease concerns over China’s ability to meet the US’ requirements.
Additionally, following the upbeat Industrial Production data from China on Monday, the Federal Reserve in its monthly report on Tuesday revealed that both Industrial Production and Manufacturing Production in the US rose more than expected in November to provide an additional boost to crude oil prices.
Combined with the OPEC’s decision to deepen oil output cuts, heightened hopes of global energy demand rising at a healthy pace in 2020 helps crude oil to head toward the end of the year on a strong note.
Later in the session, the American Petroleum Institue will release its weekly crude oil stock report. On Monday, the US Energy Information Administration (EIA) in its latest monthly report said output from seven major shale formations in the US is expected to rise about 29,000 barrels per day (bpd) in January to about 9.14 million bpd.
Technical levels to watch for
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