Crude Ticks Higher After Slow Start to WeekCrude prices are slightly higher on Tuesday. Investors are monitoring the U.S-China talks, as an agreement could boost oil prices.
Investors Eye Trade Talks
With China gripped in an economic slowdown, the U.S-China trade talks could prove critical to boosting world growth, and with it the demand for crude oil. China’s GDP dipped to 6.0% in the third quarter, and the downward trend is expected to continue if the impasse between the world’s two largest economies continues. The sides are focusing on reaching a limited trade agreement (“phase 1”), and a breakthrough in the talks could send oil prices higher.
Ahead – EIA Crude Inventories
Crude prices have been under downward pressure due to continuing surpluses of crude inventories. The Energy Information Administration (EIA) weekly reports are carefully monitored, and has recorded five straight surpluses. Last week’s surplus was especially large, with a reading of 9.3 million barrels. This marked the highest surplus since May. A more modest surplus is expected in the upcoming release, with a forecast of 2.5 million.