The price of the U.S. oil benchmark, WTI, hit nearly a 3-month high on Monday reaching $60.21 per barrel on news that China and the U.S. agreed to Phase One of a trade deal.
For months, oil prices have hinged on positive or negative news of the U.S.-China trade negotiations. It was expected that markets would respond positively to such news. The U.S. is now set to roll back tariffs on some Chinese goods in exchange for major Chinese purchases of American agricultural products. The news is clearly good for oil, as this stage of the deal should stimulate more trade improve the economy.
