Oil reaches three-month peak as US consumer spending supports growth optimism

TOKYO- Oil prices hiked up on Friday, reaching its three-month peak after data disclosed US consumers’ online spending. Such raked in optimism in world’s biggest economy prior to the possibility of Beijing and Washington signing the trade deal.

Brent crude futures advanced 13 cents, equivalent to 0.2% at 68.05 per barrel at 0150 GMT while West Texas Intermediate CLc1 hit 13 cents or 0.2% at $61.81 per barrel.

A poll released on Thursday disclosed that online holiday purchases of US consumers reached new records completely surpassing analysts’ expectations.

US consumers are “showing few signs of tightening their purse strings, which is positive for oil also,” according to Stephen Innes of AxiTrader.

Increase in oil prices was brought heavily by strong sentiment that 2020 will put an end to months-long US-China trade truce that inflicted global economic progress and left ambiguity over crude viability in the near future.

Trade war specter resurfaced, completely hitting records from Japan on Friday, as the world’s third-largest economy’s industrial production declined for a second month in November.

In line with this, Brent price surpassed a quarter in 2019 while West Texas Intermediate was rounded up to 35% enforced by Organization of the Petroleum Exporting Countries’ (OPEC) scheme of reducing oil production. Earlier this month, the organization and its other party further raised oil output cuts.