Oil prices hold steady as Trump touts sooner-than-expected trade deal

Published 26/09/2019, 03:05
© Reuters.  Oil prices hold steady as Trump touts sooner-than-expected trade deal
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By Roslan Khasawneh

SINGAPORE, Sept 26 (Reuters) - Oil prices held nearly flat

on Thursday after U.S. President Donald Trump said a resolution

to the China-U.S. trade rift would come sooner than expected,

helping to stave off pressure from rising oil supplies and

worries about global growth.

Brent crude LCOc1 futures were at $62.34 a barrel, down 5

cents, or 0.1%, from the previous close, by 0158 GMT.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were

up 6 cents, or 0.1%, to $56.55 a barrel.

President Trump said on Wednesday - a day after a stinging

rebuke to China for its trade practices - that Beijing wanted to

make a deal "very badly".

Trump and Japanese Prime Minister Shinzo Abe also signed a

limited trade deal that would open up Japanese markets to some

$7 billion worth of U.S. products annually.

"Signs of easing trade tension has overshadowed the bearish

raft of indicators that saw oil prices topple head over heels

this week," said Stephen Innes, Asia Pacific market strategist

at AxiTrader.

Both Brent and WTI on Wednesday hit their lowest marks since

the attacks on Saudi Arabian oil facilities on Sept. 14, weighed

down by a surprise 2.4 million barrels build in U.S. crude

inventories last week and a faster than expected recovery of

Saudi production capacity. EIA/S

"With the supply risk premiums evaporating and the oil fear

factor but a distant memory, demand worries are back competing

for attention," said Innes.

A firmer dollar .DXY , which posted its sharpest daily gain

in three months overnight and held steady in Asian trade, also

weighed on oil prices as it makes dollar-traded fuel imports

more costly for countries using other currencies.

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