Oil prices rose on Wednesday, extending gains from the previous session on hopes that US and China can come to an agreement that can resolve a trade dispute that has triggered a global economic slowdown.
U.S. West Texas Intermediate (WTI) crude oil futures were at $50.29 per barrel as at 0131, up 51 cents, or 1 percent from their last settlement. It was the first time this year that WTI has topped $50 a barrel.
International Brent crude futures were up 42 cents, or 0.7 percent, at $59.14 per barrel.
Both crude price benchmarks had already gained more than 2 percent in the previous session.
If no deal is reached by March 2, Trump has said he will proceed with raising tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports at a time when China’s economy is slowing significantly.
Oil prices have also been receiving support from supply cuts started at the end of 2018 by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russia.
“Crude oil prices continued to march higher, with investors becoming increasingly confident that the OPEC cuts would tighten the market,” ANZ bank said.
