Oil prices climb to end the week but futures on track to book slight weekly retreat

Oil futures looked to extend a recent run-up on Friday, with commodity experts pointing to continued optimism surrounding the prospects of global crude demand following the China-U.S. trade deal on Wednesday, and the Senate approval of the U.S.-Mexico-Canada trade on Thursday.

“Oil prices are stabilizing on improved demand outlooks since the phase-one trade deal has the Chinese penciling in $52.4 billion in additional purchases over the next two years,” wrote Edward Moya, senior market analyst at brokerage Oanda, in a daily note.

West Texas Intermediate crude for February delivery CLG20, +0.29% rose 17 cents, or 0.3%, at $58.70 a barrel on the New York Mercantile Exchange, after rising 1.2% on Thursday.

March Brent BRNH20, +0.48%, the global benchmark, advanced 25 cents, or 0.4%, at $64.87 a barrel on ICE Futures Europe, following a 1% gain a day ago.

However, for the week both contracts were set for declines. Brent is on track for a weekly gain of 0.2%. while WTI is looking at a 0.6% weekly skid.

Data from the world’s second-largest economy, China, and the biggest importer of oil, may, however, cloud the prospects for crude uptake. Chinese officials said the country emerged from 2019 with an official economic growth of 6.1%, within the government’s target range of 6% to 6.5% but the lowest level in nearly three decades.

MarketWatch

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Ed Moya

Ed Moya

Senior Market Analyst - The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geopolitical events and monetary policies around the world. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.
Ed Moya