Business Corpus: Crude Oil Prices Near Key Levels On Signs China Is Serious About Ending Trade WarOil prices rose Monday as U.S.-China trade talks began, raising hopes for an end to the trade war. Goldman Sachs cut its 2019 forecast for crude prices. The post Crude Oil Prices Near Key Levels On Signs China Is Serious About Ending Trade War appeared first on Investor's Business Daily.

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Crude oil prices rose Monday as U.S.-China trade talks got underway, raising hopes for agreement that would end the China trade war. But Goldman Sachs lowered its 2019 crude price forecast.

Vice Premier Liu He, China's most senior economic officer, attended the first day of face-to-face talks in Beijing with U.S. Deputy Trade Representative Jeffrey Gerrish, a sign that China is serious about ending the trade war with the U.S.

The U.S.-China trade war, involving the two largest economies, has dampened expectations for global economic growth and hit U.S. oil exports.

"Prior to the tit-for-tat tariffs being imposed from the middle of last year, crude oil was a success story in the U.S.-China trade relationship as Beijing bought increasing volumes of booming U.S. shale oil production," Phil Flynn, senior market analyst at Price Futures Group, wrote in his daily Energy Report.

Brent crude oil prices jumped 2.3% to $58.37 per barrel, back toward the $60 level. U.S. crude oil prices climbed 2.6% to $49.25, taking a step toward the $50 level.

Shares of oil majors were muted. Exxon Mobil (XOM) shares edged up 0.1% to 71.20 on the stock market today. Chevron (CVX) rose 0.2%. Royal Dutch Shell (RDSA) fell 0.9% and BP (BP) was down 0.6%.

2019 Outlook For Crude Oil Prices

While the China trade talks and early signs that OPEC is following through with its production cuts are supporting oil prices, some bearish signs remain.

Despite easing economic tensions with China, Goldman Sachs lowered its forecast for Brent crude oil prices to $62.50 per barrel this year. That's down from a prior estimate of $70. The investment bank sees West Texas Intermediate averaging $55.50 per barrel, cutting its earlier estimates of $64.50.

Meanwhile, domestic crude stockpiles were "virtually unchanged" last week, according to the Energy Information Administration. Analysts polled by S&P Global Platts had expected a 1.3 million-barrel drop in crude supplies.

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The post Crude Oil Prices Near Key Levels On Signs China Is Serious About Ending Trade War appeared first on Investor's Business Daily.