Crude oil climbs back up on hopes of China-US trade truce

Crude oil climbs back up on hopes of China-US trade truce

Crude oil continues to show signs of recovery as the essential commodity rose by 1%.

Analysts and traders attributed the price increase to a hopeful atmosphere surrounding the US-China trade war.

President Donald Trump said in a tweet yesterday that trade talks with China was doing well.

Data compiled by Reuters News shows that U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $50.38 per barrel at 0713 GMT, up 60 cents, or 1.2 percent, from their last settlement. That marked the first time this year that WTI has topped $50 a barrel.

International Brent crude futures LCOc1 were up 61 cents, or 1 percent, at $59.33 per barrel.

Both crude price benchmarks had already gained more than 2 percent in the previous session.

“Crude continues to extend gains as early reports from Beijing regarding trade negotiations are fueling optimism around successful trade talks between the U.S. and China,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Nigeria’s oil benchmark for its proposed 2019 budget was $60 per barrel. However, energy experts said the rally is a volatile one, it could swing both ways, while the $60 per barrel is not outrageous, Nigeria needs to stimulate non-oil sources to downplay a downward trend in crude prices.