Crude oil prices rebounded after early weakness and ended sharply higher on Friday as renewed optimism about a potential U.S.-China trade deal and hopes the OPEC might decide to deepen their supply cuts in the coming year helped ease concerns about outlook for energy demand.
Oil’s uptick was also supported by a report from Baker Hughes that showed another oil rigs count in the U.S. dropped for a fourth straight week.
West Texas Intermediate Crude oil futures for December ended up $0.95, or about 1.7%, at $57.72 a barrel.
Brent Crude oil futures gained $1.03 or about 1.7% at $63.31 a barrel.
On Thursday, WTI crude oil futures for December ended down $0.35, or 0.6%, at $56.77 a barrel.
For the week, WTI oil futures gained 0.8%.
Comments from White House economic adviser Larry Kudlow and Commerce Secretary Wilbur Ross have eased worries about energy demand outlook.
Kudlow said on Thursday that U.S. and Chinese negotiators are in contact every single day and are “getting close” to a phase one trade deal.
“It’s not done yet, but there has been very good progress and the talks have been very constructive,” Kudlow said at an event at the Council on Foreign Relations.
In an appearance on the Fox Business Network on Friday, Commerce Secretary Wilbur Ross said the talks are “down to the last details” and a deal will be completed “in all likelihood.”
For its part, China has lifted a nearly five-year ban on imports of U.S. poultry in a goodwill gesture that could lead to more than $1 billion in annual shipments to China.
Meanwhile, data released by Baker Hughes shows the number of active U.S. rigs drilling for oil declined by 10 to 674 this week. The total rig count has fallen by 11 to 806, according to Baker Hughes.
Traders also noted the latest report from the International Energy Agency that said global oil demand in the third quarter of 2019 grew by 1.1 million barrels a day, more than double the 435,000 barrels a day in the previous quarter.
The material has been provided by InstaForex Company – www.instaforex.com