Oil rises on U.S.-China hopes and improved outlook
By Collin Eaton HOUSTON (Reuters) - Oil prices rose on Monday, buoyed by an improved outlook for crude demand as better-than-expected U.S. jobs growth added to market hopes a preliminary U.S.-China trade deal would be reached this month. Brent crude futures for January settled at $62.13 a barrel, up 44 cents, or 0.7%
By Collin Eaton
HOUSTON (Reuters) - Oil prices rose on Monday, buoyed by an improved outlook for crude demand as better-than-expected U.S. jobs growth added to market hopes a preliminary U.S.-China trade deal would be reached this month.
Brent crude futures for January
Market optimism about progress in U.S.-China trade negotiations propelled U.S. stock indexes to record highs on Monday, elevating oil. Energy shares <.SPNY> gained the most of the 11 major S&P 500 sectors.
Chinese President Xi Jinping and U.S. President Donald Trump have been in continuous touch through "various means," China said on Monday, when asked when and where the two leaders might meet to sign a trade deal.
"Both sides (China and the United States) are talking up the trade deal to a large degree. And you have the Federal Reserve leaning into this better-looking economic situation, which lifts all boats," said John Kilduff, a partner at Again Capital LLC.
On Friday, prices jumped by about $2 a barrel after U.S. officials said a deal could be signed this month.
Improved U.S. jobs growth numbers in October and the upward revisions of the two previous months, reported on Friday, also eased fears of a global economic slowdown that would slow crude demand, oil-market analysts said.
Nonfarm payrolls increased by 128,000 jobs last month, U.S. Labor Department data showed. Economists polled by Reuters had forecast payrolls rising by 89,000 jobs in October. The economy also created 95,000 more jobs in August and September than previously estimated.
Federal Reserve's interest rate cut last week and recent weakness in the U.S. dollar <.DXY> has also helped lift prices, analysts said. Demand for crude oil, which is traded in U.S. dollars, typically strengthens when the dollar weakens.
"Easing monetary policy, along with improved chances of a U.S.-China trade deal, is pushing up oil markets. (Expectations of) improved demand is lifting prices," said Phillip Streible, senior market strategist at RJO Futures.
Hedge funds have started to rebuild long positions in crude and fuels.
Capping gains, U.S. crude oil inventories were forecast to have risen by 2.7 million barrels last week, a preliminary Reuters poll showed ahead of weekly data on Wednesday.
But last week's shutdown of TC Energy Corp's
The shutdown could have caused supplies at Cushing, Oklahoma, the delivery point for U.S. futures, to have risen only slightly or even decline, which would soften the impact should data show an overall crude build, said Robert Yawger, director of energy futures at Mizuho in New York.
Crude inventories at Cushing rose to about 49 million barrels on Friday, up by about 300,000 barrels from the previous reading taken on Tuesday when the spill was detected, traders said, citing market intelligence firm Genscape.
(Additional reporting by Shadia Nasralla in LONDON and Florence Tan in SINGAPORE; Editing by David Goodman and Marguerita Choy)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.