Brent, the global crude benchmark, was up 0.24% to $46.46 for cargoes loading in October. Trade in WTI was better, up 0.7% to $44.31 a barrel on the New York Mercantile Exchange. On Monday, Brent fell by 3.7%. Brent’s falls have narrowed the spread between the two benchmarks to $2.17, the lowest since January. Disappointing investment and factory output data from China was cited by the analysts as being the main reason for Monday’s falls. Analysts are split on the next likely move for oil.
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.