Crude oil prices bounced back on Tuesday from hitting roughly one-week lows to start the week as cautious optimism for an extended production-cut agreement percolated in the market. April West Texas Intermediate crude CLJ7, +0.75% rose 32 cents, or 0.7%, to $48.54 a barrel in electronic trading on the New York Mercantile Exchange, ahead of the contract’s expiration at Tuesday’s settlement. May WTI CLK7, +0.88% added 43 cents, or 0.9%, to $49.34. May Brent crude LCOK7, +0.89% rose 40 cents, or 0.8%, to $52.02 a barrel on the ICE Futures exchange in London. Oil “is finding tailwind from agency reports that OPEC is seriously considering extending its production cuts to beyond June. In our opinion, the targeted inventory reduction will only materialize if OPEC output is maintained at its present level right into the fourth quarter,” said Carsten Fritsch and the commodities team at Commerzbank, in a note.
Oil futures reached four-month highs on Thursday, but later dipped after a report that a meeting between the U.S. and Chinese presidents to resolve a trade dispute had been delayed.
Bloomberg reported that U.S. President Donald Trump and Chinese President Xi Jinping may not meet until April at the earliest, after the Wall Street Journal said this month that Xi and Trump could meet around March 27.
A continuation of the tariff war between the world’s top two economies could dent growth in fuel demand and dent prices.