Swell of optimism lifts oil
The expectation that talks between Washington and Beijing will lead to an easing in tensions between the two countries brings welcome relief
Singapore — Oil prices rose by more than 1% on Monday, lifted by optimism that talks could soon resolve the trade war between the US and China, while supply cuts by major producers also supported the market. Brent crude futures were at $57.75 a barrel at 4.04am GMT, up 69c, or 1.2%, from their last close. US West Texas Intermediate (WTI) crude oil futures were at $48.67 a barrel, up 71c, or 1.5%. Financial markets were riding a relief rally on Monday on the expectation that face-to-face trade negotiations between delegates from Washington and Beijing, due to start on Monday, would lead to an easing in tension between the two biggest economies in the world. The US and China have been locked in an escalating trade spat since early 2018, raising import tariffs on each other’s goods. The dispute has weighed on economic growth. Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 a barrel to $62.50 a barrel because of “the strong...
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