Despite President Donald Trump’s disappointment with China of late, China’s industrial production data on Friday helped boost U.S. crude oil toward $30 per barrel.
The New York-traded standard for U.S. crude, West Texas Intermediate, gained 6.8%, or $1.87, while trading at $29.43 per barrel. This happened shortly after data showed a 3.9% increase in China’s April industrial production. This is an improvement from the 1.1% dip in March.
However, the London-traded global standard for oil, Brent, rose by 4.4%, or $1.37, settling at $32.50. West Texas Intermediate gained 19% this week, extending the 42% jump from the past two weeks.
The rising production of gasoline has contributed immensely, as most of the U.S. states have resumed production once more. However, Friday’s $30 WTI gain can be attributed to China’s first industrial output rise since the COVID-19 outbreak.
According to an analyst at OANDA, Ed Moya, WTI nearing a two-month high, as well as a rise in China’s industrial production, have raised hopes for an improved crude demand in Europe and the United States. Speaking further, he described China as the economic recovery template for the rest of the world.
China’s resurgence is coming a day after the U.S. President expressed his disappointment with China’s inability to contain the coronavirus outbreak and the possibility of severing ties with the second-largest economy in the world.
The run toward $30 West Texas Intermediate would somewhat be an achievement for Trump, who lobbied Russia, OPEC, and other oil producers to cut production and has supported the United States energy industry to guarantee its survival despite the pandemic.