DTN Oil Update
Oil Futures Rise Amid Hopes for US-China Trade Deal
SECAUCUS, N.J. (DTN) -- Oil futures rose on Tuesday, Oct. 21, morning as market participants counted on the potential for a trade agreement between the United States and China that could ease some of the bearish sentiment affecting energy demand.
The NYMEX WTI crude futures contract for November delivery rose $0.46 to $57.98 bbl, while ICE Brent for December delivery climbed $0.42 to $61.43 bbl. The rebound follows three consecutive weeks of losses in WTI and Brent, pressured by concerns about oversupply.
November RBOB gasoline futures advanced by $0.0053 to $1.8355 gallon. Front-month ULSD futures advanced by $0.0110 to $2.2031 gallon.
The U.S. Dollar Index edged higher by 0.335 points to 98.69 against a basket of foreign currencies.
U.S. President Donald Trump is scheduled to meet with Chinese President Xi Jinping in South Korea, likely on the sidelines of the Asia-Pacific Economic Cooperation summit scheduled to take places from Oct. 31 to Nov. 1. Trump has expressed optimism about reaching a "fantastic deal" during this meeting.
The trade war between the U.S. and China has resulted in 50% tariffs on Chinese imports, imposed by the Trump administration, while China -- the world's second-largest oil crude oil importer -- has responded with retaliatory tariffs averaging just over 30% on U.S. goods.
Separately, market participants are also awaiting the American Petroleum Institute's weekly inventory report on oil, due later today.
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