WTI crude futures advance on improving market sentiment
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E-mail Xinhua, January 17, 2020
NEW YORK, Jan. 16 (Xinhua) -- U.S. oil prices grew 1.23 percent on Thursday, building upon investors' optimism on oil demand and macro economy.
Optimism around demand is surging following the signing of the phase-one trade deal between the United States and China on Wednesday as well as the U.S. Senate's approval of U.S.-Mexico-Canada Agreement on Thursday, according to Phil Flynn, senior market analyst with The Price Futures Group.
Current general activity of manufacturing industry in January 2020 issued by the Federal Reserve Bank of Philadelphia on Thursday jumped to 17 from 2.4 in December 2019, which lifted market sentiment materially.
The West Texas Intermediate (WTI) for February delivery gained 0.71 dollar to settle at 58.52 U.S. dollars a barrel on the New York Mercantile Exchange.
Strong crude oil production from oil producing countries outside of Organization of the Petroleum Exporting Countries and high petroleum stocks with members of the Organization for Economic Co-operation and Development provides a solid base to react to any escalation in geopolitical tension, said the latest monthly oil report released by the International Energy Agency (IEA) on Thursday.
Still, implied oversupply of crude oil from OPEC in the first half of 2020 weighed on the market and resulted in temporary decline of oil prices in overnight market.
The call on OPEC crude falls to 28.5 million barrels per day during the first half of 2020 compared with OPEC's production of 29.44 million barrels per day in December 2019, said the report by IEA. Enditem
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