Agreement between the U.S. and Mexico raised the price of oil by 5%
In the course of negotiations between the U.S. and Mexico on Friday agreements were reached on migration and trade policy, and the President then trump announced that "now the country will begin a wonderful cooperation, which was not for several decades" and quashed the imposition of a duty on Mexican goods.
At this news the futures for Brent crude on the ICE Futures exchange in London rose by 5% to 63,64 $/barrel, while July futures for WTI crude oil in new York on NYMEX increased by 5.8% to 54.3 $/barrel.
Since may 20 the price of oil has lost almost 20% because of the escalating trade war between the US and Mexico amid tense relations with China. Investors fear that a trade war will slow down the growth of the global economy and reduce demand for oil.
More rates supported by the speech of the Minister of energy of Saudi Arabia Khalid al Falha at the economic forum in St. Petersburg, where he spoke about the future cooperation of his country with Russia in the framework of the agreement OPEC+ and assured that OPEC+ will continue restrictions on oil production until the end of 2019, because the price level is lower 60 $/barrel does not allow to invest in exploration and production of oil.