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Crude Oil gains 3.8% after Trump and Xi Confirm Plans to Meet

crude, oilCrude 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.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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