(Bloomberg) –Oil was steady after the biggest weekly advance in more than a month on signs of progress in the prolonged U.S.-China trade spat.
Futures were little changed in New York after capping a 5.4% weekly gain on Friday. The U.S. said it was close to finalizing the first phase of a trade deal with China, while Beijing said parts of the text for that agreement are “basically completed.” Money managers boosted their net-long positions on West Texas Intermediate crude for the first time since mid-September.
Oil is still down more than 14% from an April peak as the trade dispute between Beijing and Washington dented demand and as supplies swelled. Global markets are “awash” in crude thanks to the surge in U.S. output, and the boom looks set to continue, Energy Secretary Rick Perry said in an interview on Sunday.
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“With indications that the U.S. and China are making more progress in tariff discussions, sentiment continues to turn more favorable,” Stephen Innes, Asia Pacific market strategist at AxiTrader, said in a note. With money managers boosting their net-long positions, the market is “turning increasingly less skeptical that a trade deal will happen.”
WTI for December delivery lost 11 cents, or 0.2%, to $56.55 a barrel on the New York Mercantile Exchange as of 9:40 a.m. Singapore time. The contract climbed 43 cents to close at $56.66 on Friday.
Brent for December settlement fell 9 cents, or 0.2%, to $61.93 a barrel on the London-based ICE Futures Europe Exchange. The contract rose 35 cents to $62.02 on Friday. The global benchmark traded at a $5.39 premium to WTI.
–With assistance from James Thornhill.
