Oil is up this morning on bullish factory news coming from China. WTI Crude is trading at $54.86, a gain of 68 cents from yesterday’s close.
Fuel is also up in morning trading. Diesel is trading at $1.9009, up 2.5 cents. Gasoline is trading at $1.6220, up 2.7 cents.
The 25-basis point interest rate cut by the Fed on Wednesday hardly registered in the crude markets. This bullish news was outweighed by bearish inventory news of a larger-than-expected build in crude stocks. The cut led to a modest gain in equities to close Wednesday, but those gains were given back in trading on Thursday.
News of delays regarding a phase 1 US-China trade deal have helped to drive markets lower this week. However, in October, China’s factory activity unexpectedly expanded at the quickest pace since 2017, causing optimism over the strength of the world’s second-largest economy. Markets are reacting positively in early trading on Friday morning.