US-China trade talk reignites Crudes hope

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Brent Crude, US Crude, CAD and US-China trade talk trending points

  • Both Brent and US crudes were over 2 percent up on Monday, January 7th, GMT. 18.00, as the trade talk hope has been heaving the investor’s confidence
  • As US-China trade tensions had been eased and there had been a possibility to reach a trade deal, the crude oil may continue to gain, alongside CAD

Crudes looking to melt shackles, as US-China trade talk reignites hope

In the face of ongoing trade talk between US and China, in Beijing, analysts are observing an opportunity to wane the possibility of recent trade tensions. According to several reports, the trade war simply evaporated trillions of dollars from global economy, and it could have been the opportune moment for the officials of the world’s two largest economies to come in to sense.However, despite faltered manufacturing data in both US and Chinese economy, both Crude and Brent oil had been able to continue the upswing momentum, which started last week, over the news of Saudi output cut. After that, crudes have now started to spread their wings, as the US-China trade talk hope and a recession in US government had been factually helping the oil price to fathom further gains.

Brent Crude daily price chart

Brent crude daily chart

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US crude daily price chart

US crude daily chart

While this report is being prepared, the US crude was trading at $49.50 per barrel and the Brent Crude had been trading at $58.21 a barrel, January 7th, Monday, GMT. 18.00.

So far, the crude oils seemed to be in a safe haven territory alongside gold, priced at $1288. Both Crude and gold might secure further gains this week, amid hope of US-China trade talk. Apart from that, there had been a number of factors jolting the oil price, including the implementation of agreed output cut of 1.2 million per day from January 1st, 2019.

Bottom Line

Despite distressful manufacturing data from both US and Chinese economy and a faltered export data from South Korea, the oil had been on the gaining for straight five days and this recent leg of crude rally could extend in to next week, if US and China could reach a trade-savvy solution at the end of this recent trade talk, on January 8th.

At this moment, the Brent crude is likely to break through its key resistance at 60.18 and the US crude could soon resurface over the 50 regions. On the flipside, US and Brent crude’s initial support level remained at 48.75 and 57.21 subsequently, however, both of the crudes seemed to be highly supported alongside gold.

Read more on Crude oil here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]

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