- The US-China trade optimism is likely pushing oil higher in Asia.
- OPEC+ output cuts and a drop in the US oil rigs likely adding to the bid tone around oil benchmarks.
Oil benchmarks at both sides of the Atlantic are solidly bid at press time, possibly due to reports stating that the US and China are edging closer to signing a trade deal.
As of writing, Brent is trading 0.50 cents or 0.76 percent higher on the day at 65.38 per barrel. WTI is also reporting moderate gains above $56 per barrel.
Wall Street Journal (WSJ) reported earlier today that US-China “agreement is taking shape”. If both sides reach a deal ending the tit-for-tat tariffs, then the global economy will likely recovery, strengthening demand-side pressures in the oil market, which is already buoyed by OPEC+ supply cuts.
The Cartel’s supply fell to a four-year low in February, according to a Reuters survey.
Further, Baker Hughes reported Friday that the oil and natural gas rigs active in the United States fell to 843 in the week ended March 1, the lowest level since May 2018. The data may have alleviated fears of rising US supplies to some extent, helping oil gain altitude earlier today.
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