Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Oil surges 5% on U.S.-China trade optimism, falling crude output

share with twitter share with LinkedIn share with facebook
05/29/2020 | 03:55pm EDT
An oil pump is seen just after sunset outside Saint-Fiacre

By Laila Kearney

Oil prices soared on Friday, with U.S. futures closing out May with record monthly gains, on hopes that the U.S.-China trade deal would remain intact and on falling crude production.

West Texas Intermediate crude futures for July delivery settled at $35.49 a barrel, jumping $1.78, or 5.3%.

July Brent crude closed at $35.33 a barrel, gaining 4 cents. However, the more active August contract ended at $37.84, rising $1.81, or roughly 5%.

Both benchmarks saw steep monthly rises due to falling global production and expectations for demand growth as parts of the United States, including New York City, and other countries move to reopen after coronavirus-related lockdowns.

WTI recorded an all-time monthly rise of 88% after trading negative last month. Brent logged an increase of about 40% for its strongest monthly bounce since March 1999.

U.S. President Donald Trump said his administration will begin to eliminate special treatment for Hong Kong in response to China plans to impose new security legislation in the territory, but he did not say the first phase of the Washington-Beijing trade deal was in jeopardy.

That put oil investors, worried that a breakdown in trade relations would further hurt oil consumption, at ease.

"There was a lot of nervousness going into this press conference, so it looks like the worst case scenario doesn't appear to be emerging," said John Kilduff, a partner at Again Capital Management in New York.

Oil was also supported by a record-low number of U.S. and Canadian oil and gas rigs, which indicates a further drop in supply out of the world's biggest crude producer. [RIG/U]

The U.S. oil and gas rig count fell by 17 to an all-time low of 301 this week, according to data from energy services firm Baker Hughes Co going back to 1940.

(Additional reporting by Ahmad Ghaddar in London and Florence Tan in Singapore; Editing by Marguerita Choy, Susan Fenton and Nick Zieminski)

Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL 0.21% 42.586595 Delayed Quote.-35.88%
RISE, INC. -3.13% 31 End-of-day quote.3.33%
THE GLOBAL LTD. -3.30% 205 End-of-day quote.-56.48%
WORLD CO., LTD. -5.40% 1420 End-of-day quote.-47.23%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
01:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
01:13aEXCLUSIVE : U.S. turns screws on maritime industry to cut off Venezuela's oil
01:13aYuan hovers at key 7/dollar mark ahead of Q2 economic data
01:05aHong Kong Book Fair postponed amid spike in coronavirus cases
12:51aMINISTRY OF TRADE INDUSTRY AND ENERGY OF REPU : Korea's ICT export growth turns positive in June
12:43aChina's export slump to ease in June as economies reopen, imports fall less - Reuters poll
12:37aChina's start-up index hits 4-1/2-year high on earnings improvement hopes
12:32aFuneral of mayor of S.Korean capital held amid allegations of sexual abuse
Latest news "Economy & Forex"