Oil extended gains as hints of trade detente between the U.S. and China and the prospect of monetary stimulus buoyed financial markets.
Futures in New York rose 0.4% after closing up 2.4% on Monday. The White House will extend exemptions protecting U.S. customers from a ban on doing business with Huawei Technologies Co. for another 90 days, Commerce Secretary Wilbur Ross said Monday. The move comes after President Donald Trump delayed new tariffs on some Chinese goods until mid-December.
Crude has swung between gains and losses this month as investors reacted to trade war developments. Germany is preparing fiscal stimulus measures to head off the chances of a deep recession, while more Federal Reserve rate cuts are expected to shore up American growth. Analysts are forecasting that U.S. stockpiles fell for the first time in three weeks, a positive sign for oil markets.
West Texas Intermediate crude for September delivery rose 24 cents, or 0.4%, to $56.45 a barrel on the New York Mercantile Exchange as of 7:23 a.m. in London. The contract, which expires Tuesday, increased $1.34 on Monday. The more active October contract added 23 cents to $56.37.
Brent for October settlement advanced 23 cents to $59.97 on the ICE Futures Europe Exchange after climbing 1.9% on Monday. The global benchmark crude traded at a premium of $3.61 a barrel to WTI, the lowest since March 2018.
Source : Bloomberg