Crude oil prices on Friday gained Rs 36 to Rs 4,236 per barrel as speculators created fresh positions amid positive trend at spot market.
Analysts said fresh bets created by participants kept crude prices higher in futures trade.
On the Multi Commodity Exchange, crude for delivery in December traded higher by Rs 36, or 0.86 per cent to Rs 4,236 per barrel in 27,180 lots.
Globally, West Texas Intermediate crude oil was trading 0.64 per cent up at USD 59.86 per barrel.
Oil jumped on Friday after the UK election and the announcement of a “Phase One” trade deal between the U.S. and China. Both issues offered some certainty to investors. In early trading on Friday, WTI was at about $60 per barrel, a three-month high.
“Risk appetite among financial investors is now likely to remain high thanks to the deal between the U.S. and China,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. But, “the oil market risks facing a massive oversupply and a pronounced inventory build, at least in the first half of the year.”
Partial trade deal reached. The U.S. and China reached a partial trade deal, consisting of the U.S. cutting tariffs on Chinese goods and delaying a separate tranche of tariffs scheduled to go into effect next week.
In exchange, China would make verbal commitments to buy agricultural goods. The deal would mark a significant climb-down by President Trump, but from the market’s perspective, any truce is positive news. Oil rose on Thursday and in early trading on Friday.
