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Surprisingly positive economic news is coming from us, the possibility of the US-China trade deal in the coming weeks and a bounce rally in the US stock markets was the major factors that promoted crude oil prices today.
WTI closed at $ 64.58 per barrel today for July delivery, today $ 1.21. Brent crude was last seen by $ 66.33 per barrel, 99 cents.
After two weeks fall, WTI received about 6 percent for the week.
On the macroeconomic front, the parole report released by the Labor Department for May revealed that non-agricultural parole rose up to 139,000, above a forecast of 130,000. In addition, the unemployment rate was at a stable rate of 4.2 percent for the second straight month.
As a result, the US dollar strengthened with increasing optimism about the sound economy supporting energy demand.
On the political front, after the much awaited phone call between President Donald Trump and Chinese President Xi Jinping, an American-China business meeting is expected within a week. It has given rise to hopes of a business deal between the two major economies of the world.
If this deal comes, it can actively promote global trade resulting in a demand for oil.
In the supply side, the wildfire in Alberta, Canada reduced the country’s production by about 7 percent. However, recent rains have helped keep the fire under control.
Saudi Arabia has indicated plans to advance OPEC+ to increase output to meet summer demand.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
