WTI Jumps 3% on Trade Deal Optimism

Oil prices climbed more than 2% on Thursday, lifted by renewed optimism over upcoming trade negotiations between the United States and China, the world’s two largest oil consumers.

Oil and equity markets were buoyed on Thursday by the announcement from U.S. President Donald Trump that the United States would sign the first post-tariff trade deal with the United Kingdom.

The first trade deal to be announced since the U.S. President threatened tariffs on all trade partners instilled hopes in the market that compromises and deals can be reached and recessions and a dip in oil demand could be avoided.

Brent crude rose $1.66, or 2.72%, to $62.78 a barrel by 11:53 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude gained $1.77, or 3.05%, to reach $59.84.