Crude prices traded in the green on Tuesday, extending gains from earlier in the session with the American benchmark West Texas Intermediate (WTI) jumping 2% as investors remained optimistic amid renewed hopes of a new trade deal between the United States and China.
US President Donald Trump tweeted earlier that trade negotiations between the two countries are going well while Beijing said that both sides are willing to work together towards a solution that works for both sides.
Meanwhile, market watchers continued to anticipate the positive effects on OPEC’s and major oil producers’ output cut deal agreed earlier. Saudi Arabia and Russia, the world’s biggest crude exporters, have been substantially capping their outputs which additionally boosted investment incentives in the oil market.
WTI for February delivery gained 2.08%, changing hands for $49.56 per barrel at 2:57 pm GMT while the international benchmark Brent for settlements in March rose 1.80% to trade for $58.43 per barrel at 2:58 pm GMT.