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The two main factors driving up oil prices



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US. West Texas Intermediate and International Benchmark Brent crude futures are higher on Friday, allowing both markets to close higher for the week. Markets are also able to reverse the upward trend on the daily chart after having rallied for nearly months in the counter-trend.

Rise in Trade Agreements

The catalysts behind the rally are hoping for trade between the United States and China, and adherence to the OPEC-led plan to curb production, reduce global oversupply, and stabilize prices.

Perhaps the downside of prices is concerns about growing US production and global demand.

Following a sideways-heavy trade earlier in the week, crude oil prices on Friday raise a bid in response to a report in the The Wall Street Journal stating that Finance Minister Steven Mnuchin proposed the idea of ​​cutting tariffs on Chinese goods. This comes with the successful mid-level talks earlier this month and the much-anticipated higher-level negotiations expected to occur on January 30 and 31

.

At this time, the reaction to the report in the WSJ is only speculation since finance ministries told CNBC that "no discussion is currently underway on collecting duties". Still, the story was strong enough to push some of the weaker short positions out of the crude oil market.

OPEC Report Provides Extra Assistance

The rally in the last weeks of the week in Crude Oil is also being …

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