Recently, oil prices became stable in the commodity market. It happened as reports of slow-moving economic growth in China lifted concerns over fuel demand.
Moreover, the matter has countered confidence from the signing of a U.S.-China trade deal this week.
In 2019, the world’s second-largest economy grew by 6.1%. According to government data, it is the slowest expansion seen in 29 years.
Market analyst Margaret Yang said, “A well-expected fourth-quarter China GDP rate (6%) provided a little clue for oil price trading on Friday morning.”
Yang added that the escalating downward economic strain might limit oil’s upside in the mid- to long-term.
After that, Brent crude futures rose by 12 cents to $64.74. The increase happened in the wake of obtaining almost 1% on Thursday.
The U.S. West Texas Intermediate futures also grew by 11 cents at $58.63 per barrel. In the last session, it soared to more than 1%.
Moreover, oil enhanced on Thursday at the back of the signing of the Phase 1 trade settlement of the United States and China.
Advancement of Free Trade Agreement
The mood further developed after the U.S. Senate backed changes to the U.S.-Mexico-Canada Free Trade Agreement.
As a result, it raises Chinese demand. It was noticed in refinery throughout numbers offset the less buoyant economic growth data.
Back in 2019, Chinese refineries administered 651.98 million tons of crude oil. The measure is equivalent to a record high of 13.04 million barrels a day, up and about by 7.6% from 2018.
Meanwhile, the International Energy Agency proposed a dim view of the oil market point of view for 2020 on Thursday.
OPEC will also provide and try to surpass demand for its crude.
The matter will happen even though OPEC member states abide by entirely with output cuts agreed with Russia along with other manufacturers in a group called OPEC+.
In a statement, Economist Howie Lee clarified, “The next big factor I see on the horizon is whether OPEC+ would want to extend its cuts beyond Q1 2020, which at current price levels I think they might be incentivized to do.”