Oil Advances as Trump Announces ‘Full’ US Trade Deal With UK
Oil rose as President Donald Trump said the US reached a trade agreement with the UK, the first of his promised deals with countries around the world.
West Texas Intermediate climbed almost 3% to approach $60 a barrel. Trump described the deal as “full and comprehensive” on his social media platform, with the White House promising details later on Thursday.
Crude has slid since Trump took office on concerns that his global trade war will dent economic growth and slow energy demand. Adding to the bearishness, OPEC+ has decided to revive idled output faster than expected. Already, the drop in oil prices is spurring American shale producers to cut spending in the Permian Basin.
Mounting bullishness is also being reflected in the options market. There was active trading of Brent $95 September call options, which profit when prices gain.
WTI for June delivery gained 2.7% to $59.63 a barrel at 10:28 a.m. in New York.
Brent for July settlement rose 2.3% to $62.55 a barrel.
Source: Bloomberg