Oil extends gains on US inventory decline, trade deal optimism

Oil rose for a third session as an industry report showed American inventories shrank and as optimism over a partial US-China trade deal grew. Futures rose as much as 0.7 per cent in New York, extending gains as trading resumed after the Christmas break. Prices are up more than 11 per cent in December, on pace for the largest monthly gain in almost a year. US stockpiles dropped 7.9 million barrels last week, Reuters reported, citing American Petroleum Institute data. China data on Wednesday showed imports of US soybeans surged to the highest in about two years, while President Donald Trump said a trade pact between the two nations is “done.”

Oil has surged 35 per cent so far this year as the world’s two largest economies made a breakthrough on an initial trade deal. The Organization of Petroleum Exporting Countries and its allies also extended their agreement to reduce output, while oil production growth in the US tapered off and stabilized at a lower level.

Oil extends gains on US inventory decline, trade deal optimism

Oil rose for a third session as an industry report showed American inventories shrank and as optimism over a partial US-China trade deal grew. Futures rose as much as 0.7 per cent in New York, extending gains as trading resumed after the Christmas break. Prices are up more than 11 per cent in December, on pace for the largest monthly gain in almost a year. US stockpiles dropped 7.9 million barrels last week, Reuters reported, citing American Petroleum Institute data. China data on Wednesday showed imports of US soybeans surged to the highest in about two years, while President Donald Trump said a trade pact between the two nations is done. Oil has surged 35 per cent so far this year as the worlds two largest economies made a breakthrough on an initial trade deal. The Organization of Petroleum Exporting Countries and its allies also extended their agreement to reduce output, while oil production growth in the US tapered off and stabilized at a lower level.