Oil bid in Asia on US-China trade optimism

The US-China trade optimism is likely pushing oil higher in Asia.
OPEC+ output cuts and a drop in the US oil rigs likely adding to the bid tone around oil benchmarks.

Omkar Godbole FXStreet Contributor

Oil benchmarks at both sides of the Atlantic are solidly bid at press time, possibly due to reports stating that the US and China are edging closer to signing a trade deal.

As of writing, Brent is trading 0.50 cents or 0.76 percent higher on the day at 65.38 per barrel. WTI is also reporting moderate gains above $56 per barrel.

Wall Street Journal (WSJ) reported earlier today that US-China "agreement is taking shape". If both sides reach a deal ending the tit-for-tat tariffs, then the global economy will likely recovery, strengthening demand-side pressures in the oil market, which is already buoyed by OPEC+ supply cuts.

The Cartel's supply fell to a four-year low in February, according to a Reuters survey.

Further, Baker Hughes reported Friday that the oil and natural gas rigs active in the United States fell to 843 in the week ended March 1, the lowest level since May 2018. The data may have alleviated fears of rising US supplies to some extent, helping oil gain altitude earlier today.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.