Positive trade sentiment gives a boost to the price of oil

The WTI pushed off a key zone, and after recording a new low for the day, the price rebounded by nearly $ 1.10, leaving it in positive territory. BRENT remains within the range of about $ 1.

With the sentiment of the already dwindling trade war (for now) improving, China has announced it will start buying US $ 52.4 billion in energy products this year and next, but 5% tariffs on US oil remain in place.

Imports of oil from the US to the Asian country peaked in 2018 at 14.7 million barrels per day. They will now have to increase purchases by 21.9 million barrels per month and 36.2 m / bp in 2021 to meet the target.

Improvement in sentiment has fueled oil, but that does not seem to push the price strong in the upward channel.

Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.

 Trader Martin Nikolov

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