Oil prices rose early Monday, extending last week's gains as new hopes were gathered for a US-China trade deal, and growing signs of a tightening market. as a result of OPEC production cuts and US sanctions against Iran and Venezuela.
On Monday at 07:38 EST, WTI crude traded up 0.80% to $ 56.43, while Brent crude slid its previous gains to trade down 0.02% to 66.24. dollars.
Still, Brent Brut is currently on track for its best performance since a first quarter since 2011. Until here in 2019, oil prices have risen by about 25%.
On Friday afternoon, oil prices reached their highest level in three months and the highest since the beginning of the year, Brent crude exceeding $ 65 per barrel for the first time since November 2018. Larger than expected cuts from OPEC and its de facto leader Saudi Arabia, a producer, contributed to higher prices. This bullish signal, combined with a renewed optimism expressed by both the US and China, had made some progress in last week's trade talks.
Representatives of the world's two largest economies will meet in Washington this week for a new round of trade talks and markets, including the oil market, currently believe that the worst of a trade war could be avoided and that Any agreement could be reached.
"[W]We look at the balance of the roughest H1 crude for many years and, as such, some degree of price support only makes sense for now, "said JBC Energy's consulting firm on Monday. Reuters.
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Although there are many unpredictable factors and many uncertainties, the latest available data suggest that the oil market is narrowing, according to PVM Oil Associates analyst Tamas Varga.
"It is not recommended to swim against the current and currently, the" oil river "flows north," Varga told Reuters.
Last week, hedge funds and other fund managers increased their expectations for the Brent Brut price increase by 10% as portfolio managers' sentiment has been on the rise since the end of October 2018.
By Tsvetana Paraskova for Oilprice.com
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