Oil Set for Second Weekly Gain on Trade Optimism and OPEC Curbs - Bloomberg

Oil Set for Second Weekly Gain on Trade Optimism and OPEC Curbs - Bloomberg:

Oil headed for a second weekly increase as the U.S. and China worked on resolving their trade impasse, and as output cuts by OPEC and its allies balanced surging American supply.

Futures in New York edged higher Friday, taking this week’s increase to 2.7 percent. President Donald Trump will meet with China’s vice premier and top trade negotiator on Friday as the world’s two biggest economies try to resolve their differences. While U.S. crude stockpiles have increased for five straight weeks and production has jumped to a new record, Saudi Arabia and its partners’ output cuts are creating some optimism among traders.

Oil has climbed this year with the Organization of Petroleum Exporting Countries and its allies estimating they delivered 83 percent of promised output reduction last month. Saudi Arabia has cut deeper than it agreed to and has said it expects oil markets to balance by April. Still, American supply growth is tempering that outlook.