Crude oil futures, during the overnight North American trade session, jumped higher after President Donald Trump said he would be meeting with Chinese President Xi Jinping at the G-20 Summit in Japan. This meeting is scheduled for next week. China has confirmed this.
The black gold was also supported by rising tensions in the Middle East and with the United States announcing that they are sending more troops to the region.
U.S. West Texas Intermediate crude futures (WTI), for front end delivery, were up $1.75, or 3.4 percent to trade at $53.68 a barrel.
The international oil futures benchmark, Brent crude gained $1.07 to trade at $62.01 a barrel.
Oil futures gained after Trump tweeted that he had “a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.”
Crude Oil Futures React to Positive Trade War News
Trump and Xi will meet next week, in Japan, and traders are hoping that they can resolve their trade spat that began a year ago. This was a welcome development for global financial markets after the collapse of trade talks last month.
China has officially confirmed that President Xi will indeed meet with the U.S. President. However, their tone is more cautious. President Xi thinks both sides should continue to meet in order to resolve the trade dispute. Xi added that “the United States would treat Chinese firms with respect,” in an apparent slight over Huawei. Xi also said that by not talking was bad for both economies and for the world.