Oil is backed up with a trade agreement

Oil continues to strengthen on Monday. The market appreciates the official announcement of the "first phase" of a trade agreement between the US and China. The US trade representative reported about it on Friday and afterward oil updated local maximum at $65.76 per barrel. If optimism from the progress in the trade conflict between the United States and China continues, the upward trend will continue. The short-term goal for bulls remains unchanged - this is an area of ​​$66.0-66.6. However, it is necessary to break through the local level of $65.6 first.

On Friday, the parties made significant progress and established an 86-page document. Not all important issues were resolved in the first phase, however, the current progress looks impressive, especially for the United States:

• The United States will halve 15% duties on Chinese goods in the amount of $ 120 billion.

• The US will indefinitely suspend fees on smartphones and laptops.

• China will increase purchases of US goods by $ 200 billion over the next two years. Including purchases of agricultural products for $ 40—50 billion.

• China agreed to end coercive practices on foreign companies to transfer technology to Chinese companies.

The signing of the document is scheduled for the first week of January. Donald Trump announced that the next phase of negotiations will begin immediately after that.

Olymp Trade Review