Crude oil futures recovered this morning during Asian trade hours. They had fallen the previous session. China has said that they will send a delegation to the United States. This is an attempt to resolve a simmering trade spat with the United States. This trade fight is roiling the global markets.
As of 2 am GMT, U.S. West Texas Intermediate (WTI) crude futures were higher. The contract was trading at $65.11 per barrel. This is up ten cents or 0.15 percent from their previous day’s close.
International benchmark, Brent crude oil futures were higher. They gained 41 cents, or 0.6 percent. This contract was trading at $71.17 per barrel.
Both of the benchmark WTI oil contracts had lost better than two percent on Wednesday.
Crude Oil Traders follow Trade Statements between the US and China
Traders said that they were following headlines that China’s Ministry of Commerce said that they would send a delegation led by vice commerce minister Wang Shouwen to the United States for trade talks sometime this month.
This is at the invitation of the United States. They will be led by U.S. Under Secretary of Treasury for International Affairs, David Malpass, the US commerce ministry said in a statement.
Sentiment is still cautious thanks to US oil production. There is a continued increase crude production out of the world’s largest economy as well as inventory. There is also a demand weakness in emerging economies, especially in Asia. This is capping any meaningful recovery in the market prices.