Oil prices were higher on Monday morning in London after ending Q1 with the strongest quarterly gains in a decade, even as investor concerns about the U.S.-Sino trade war and the slowing global economy put pressure on global markets. U.S. WTI futures were up 0.68 percent to $60.55 per barrel as of 11:37 a.m. GMT. Brent crude futures soared 1.18 percent to $68.38 per barrel.
Oil prices were supported by the sanctions placed against Iran and Venezuela by U.S. President Donald Trump, as well as by supply cuts implemented by OPEC and Russia in July 2019. In recent days, U.S. officials have doubled down on efforts to get other countries on board with the sanctions by threatening sanctions to those who don’t comply. Also supporting oil prices was a recent decrease in the number of operating oil rigs in the U.S. to the lowest level in nearly a year. The cut last week contributed to the largest quarterly decline in operating rigs in three years, Baker Hughes reported.
Gold Falls on Increased Optimism
Stronger-than-expected data out of China on Monday coupled with hints of progress in the U.S.-Sino trade conflict sent gold prices lower. Factory activity in China unexpectedly increased for the first time in four months in March, showing that the government’s stimulus measures may finally be starting to impact the country’s economy in a positive way.
The precious metal was trading down 0.28 percent to $1,294.80 per ounce after trade negotiations between the U.S. and China concluded last week with President Trump’s statement that things were going very well. China’s State Council said on Sunday that they would extend their tariff suspension on U.S. vehicles and auto parts as the countries work to resolve their differences. Talks are expected to resume next week in Washington.