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Oil Starts New Year On Positive Note, Settles Modestly Higher

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Oil Starts New Year On Positive Note, Settles Modestly Higher

Crude oil prices rose on Thursday amid optimism about a U.S.-China trade deal and on hopes of increased demand for the commodity.

Possible disruptions in crude oil supply due to the ongoing Political unrest in the Middle East contributed as well to oil’s uptick.

West Texas Intermediate crude oil futures for February ended up $0.12, or about 0.2%, at $61.18 a barrel, coming off a low of $60.64 a barrel.

On Tuesday, WTI crude oil futures for February ended down $0.62, or about 1%, at $61.06 a barrel.

According to a report released by the American Petroleum Institute on Tuesday evening, U.S. crude stockpiles fell 7.8 million barrels in the week ended December 27, nearly 2.5 times the expected drop.

The official crude inventory data from Energy Information Administration will be out on Friday morning.

U.S. President Donald Trump said earlier this week that an initial trade deal with China would be signed on Jan. 15 at the White House, and that he would later travel to Beijing to begin negotiations on the next phase.

News of monetary policy easing by China also helped improve demand outlook for the commodity. The People’s Bank of China announced a cut in banks’ reserve requirement ratio by 50 basis points on Jan. 6, a move that frees up more money for banks to lend to small businesses.

The material has been provided by InstaForex Company – www.instaforex.com