Published: Tue, January 14, 2020
Markets | By Otis Pena

Crude Rebounds on Positive Chinese Data

Crude Rebounds on Positive Chinese Data

-China trade deal is due to be signed at the White House on Wednesday.

Despite the undeniable positive impact of the deal on the global markets, the consequences of this deal for the Iranian oil market could be a little complicated.

Oil prices surged to their highest in nearly four months after a US drone strike killed an Iranian commander and Iran retaliated with missiles launched against USA bases in Iraq.

West Texas Intermediate crude oil is now trading at $58.16 having travelled between a low of $57.97 and $59.26, -1.71% on the day so far and well below the $65.65s post Iranian missile strikes on Iraqi targets. -Iraqi bases last week in retaliation for Washington's assassination of its top general.

Chinese tanker owning firms and executives for transporting Iranian oil in violation of the US sanctions on the Islamic Republic. U.S. Trade Representative Robert Lighthizer told Fox Business that the Chinese translation of the deal's text was nearly done.

Washington is consulting with Chinese colleagues to cut off oil supplies from Iran to China, U.S. Treasury Secretary Stephen Mnuchin said.

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As I mentioned earlier, despite the US sanctions, China still remains Iran's top oil customer, and the idea of the Asian country cutting ties with Iran would be a huge blow to the Iranian oil industry and economy in general.

As reported by Reuters, Myron Brilliant, the U.S. Chamber of Commerce's Executive Vice President said on Monday that the Phase 1 trade deal "stops the bleeding" but does not end the trade war.

Although, details surrounding the deal are yet to be spelt out but however, business a.m. gathered that China has made a commitment to purchasing more than $50 billion worth of energy products that will be supplied by the U.S over the next two years.

Further, strengthening Chinese crude oil demand, as suggested by the latest fuel oil imports data from China, also helps limit the falls in the commodity.

The eighteen-month trade spat according to experts has disrupted global economic growth which has dampened demand for oil among consumers.

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