Tag Archives: U.S. China trade deal

Oil back in positive territory ahead of U.S.-China trade deal

By Ron Bousso

LONDON (Reuters) – Global oil benchmark Brent crude rose to more than $64.50, recovering from four days of declines on easing Middle East tensions, as the United States and China prepared to sign a preliminary trade deal.

Brent crude gained 43 cents, or 0.7%, to $64.63 a barrel by 1507 GMT. U.S. West Texas Intermediate crude futures rose 11 cents, or 0.2%, to $58.20 a barrel.

The outlook for oil demand was supported by the expected signing of a Phase 1 U.S.-China trade deal on Wednesday, marking a major step in ending a dispute that has cut global growth and dented demand for oil.

China has pledged to buy more than $50 billion in energy supplies from the United States over the next two years, according to a source briefed on the trade deal.

The trade war between the world’s two biggest energy consumers had a tangible impact on global oil demand growth last year, said Tamas Varga, an analyst at broker PVM. Varga pointed to 2019 demand growth of 890,000 barrels per day (bpd), compared with initial forecasts of 1.5 million bpd.

“This year, however, the pace is expected to pick up again and average 1.25 million bpd … In the event of a trade deal upward revisions can be anticipated,” Varga said.

Regardless of trade wars, China’s crude oil imports in 2019 surged 9.5% from the previous year, setting a record for a 17th straight year as demand growth from new refineries propelled purchases by the world’s top importer, data showed.

However, gains were limited by easing concern over possible supply disruptions as a result of tensions in the Middle East.

The recent declines came as investors unwound bullish positions built after the killing of a senior Iranian general in a U.S. air strike on Jan. 2, which sent oil prices to a four-month high, said Harry Tchilinguirian, global oil strategist at BNP Paribas in London.

“As geopolitical tensions take a back seat for now, we may see more of the same in the short term,” Tchilinguirian told the Reuters Global Oil Forum.

Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said his country will work for oil market stability at a time of heightened U.S.-Iranian tension.

He also said it was too early to talk about whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, would continue with production curbs that are due to expire in March.

Separately, U.S. crude oil inventories were expected to have fallen last week, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of reports from the American Petroleum Institute (API), an industry group, and the Energy Information Administration, an agency of the U.S. Department of Energy.

(Additional reporting By Jessica Jaganathan; Editing by Louise Heavens and David Goodman)

White House adviser says U.S.-China trade deal on track for January 15

White House adviser says U.S.-China trade deal on track for January 15
WASHINGTON (Reuters) – The Phase 1 U.S.-China trade deal is on track to be signed Jan. 15, White House economic adviser Larry Kudlow told Fox Business Network on Friday.

“It’s all on schedule,” he said.

The translation of the agreement “has worked out beautifully. It is virtually complete,” Kudlow added in an interview, adding that he had spoken to U.S. Trade Representative Robert Lighthizer on Thursday.

(Reporting by Susan Heavey; Editing by Chizu Nomiyama)

As Hong Kong braces for protests, Chinese paramilitary holds drills across border

Chinese soldiers walk in formation on the grounds of the Shenzhen Bay Sports Center in Shenzhen across the bay from Hong Kong, China August 15, 2019. REUTERS/Thomas Peter

By Farah Master

HONG KONG (Reuters) – Hong Kong braced on Thursday for more mass demonstrations through the weekend, as China again warned against foreign interference in the city’s escalating crisis and as mainland paramilitary forces conducted exercises just across the border.

Western governments, including the United States, have stepped up calls for restraint, following ugly and chaotic scenes at the city’s airport this week, which forced the cancellation of nearly 1,000 flights and saw protesters set upon two men they suspected of being government sympathizers.

Military vehicles are parked on the grounds of the Shenzhen Bay Sports Center in Shenzhen, China August 15, 2019. REUTERS/Thomas Peter

Military vehicles are parked on the grounds of the Shenzhen Bay Sports Center in Shenzhen, China August 15, 2019. REUTERS/Thomas Peter

The airport, one of the world’s busiest, was returning to normal but under tight security after thousands of protesters had jammed its halls on Monday and Tuesday nights, part of a protest movement Beijing has likened to terrorism.

Across a bridge linking Hong Kong’s rural hinterland with the booming mainland city of Shenzhen, hundreds of members of the paramilitary People’s Armed Police conducted exercises at a sports complex in what was widely seen as a warning to protesters in Hong Kong.

The police could be seen carrying out crowd-control exercises, and more than 100 dark-painted paramilitary vehicles filled the stadium’s parking lots.

Chinese state media had first reported on the exercises on Monday, prompting U.S. concerns they could be used to break up the protests. However, several western and Asian diplomats in Hong Kong told Reuters Beijing has little appetite for putting the PAP or the People’s Liberation Army onto Hong Kong’s streets.

Ten weeks of increasingly violent confrontations between police and protesters have plunged Hong Kong into its worst crisis since it reverted from British to Chinese rule in 1997, and police tactics have been toughening.

The protests represent the biggest populist challenge for Chinese President Xi Jinping since he came to power in 2012 and show no immediate signs of abating.

Late on Wednesday night, police and protesters faced off again on the streets of the financial hub, with riot officers quickly firing tear gas.

Seventeen people were arrested on Wednesday, bringing the total detained since June to 748, police told a news conference, adding that police stations have been surrounded and attacked 76 times during the crisis.

TRUMP AND TRADE DEAL

U.S. President Donald Trump tied a U.S.-China trade deal to Beijing resolving the unrest “humanely”, and suggested he was willing to meet Xi to discuss the crisis.

“I have ZERO doubt that if President Xi (Jinping) wants to quickly and humanely solve the Hong Kong problem, he can do it. Personal meeting?” Trump said on Twitter.

The U.S. State Department said it was deeply concerned over reports that Chinese police forces were gathering near the border with Hong Kong and urged the city’s government to respect freedom of speech.

It also issued a travel advisory urging U.S. citizens to exercise caution in Hong Kong. China has frequently warned against what it regards as outside interference in an internal issue.

Other foreign governments urged calm. France called on city officials to renew talks with activists, while Canada said China should handle the protests with tact.

The Civil Human Rights Front, which organized million-strong marches in June, has scheduled another protest for Sunday.

The protesters have five demands, including the complete withdrawal of a now-suspended extradition bill that would have allowed criminal suspects to be sent for trial in mainland Chinese courts.

Opposition to the extradition bill has developed into wider concerns about the erosion of freedoms guaranteed under the “one country, two systems” formula put in place after Hong Kong’s return to Chinese rule in 1997.

RECESSION FEARS

It was not yet clear whether the airport clashes had eroded the broad support the movement has so far attracted in Hong Kong, despite adding to the city’s faltering economy.

The protests could push Hong Kong into a recession, research firm Capital Economics said, and risked “an even worse outcome if a further escalation triggers capital flight”.

Hong Kong’s property market, one of the world’s most expensive, would be hit hard in that scenario, it added.

Financial Secretary Paul Chan unveiled a series of measures worth HK$19.1 billion ($2.44 billion) on Thursday to tackle economic headwinds, but he said it was not related to political pressure from the protests.

Business and citizens’ groups have been posting full-page newspaper advertisements that denounce the violence and back Hong Kong’s government.

The head of Macau casino operator Galaxy Entertainment, Lui Che-woo, urged talks to restore harmony. The protests have affected the neighboring Chinese territory of Macau, with some visitors avoiding the world’s biggest gambling hub amid transport disruptions and safety concerns.

(Additional reporting by Donny Kwok, Noah Sin, Kevin Liu and Twinnie Siu in HONG KONG, David Brunnstrom and Jonathan Landay in WASHINGTON, Mathieu Rosemain in PARIS, and David Ljunggren in OTTAWA; Writing by Farah Master; Editing by Paul Tait and Darren Schuettler)

Trump says he has a ‘feeling’ that U.S., China can strike trade deal

FILE PHOTO: U.S. President Donald Trump speaks at a fundraiser in Des Moines, Iowa, June 11, 2019. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he had a “feeling” that a U.S.-China trade deal could be reached but again threatened to increase tariffs on Chinese goods if no agreement is reached.

Speaking to reporters at the White House, Trump also reiterated his intention to meet with Chinese President Xi Jinping but gave no further details.

“I have a feeling that we’re going to make a deal with China,” Trump said.

Trump and administration officials have been eyeing a possible meeting between the two leaders at the upcoming G20 summit in Japan, but Beijing has not confirmed any planned talks.

Trade talks between the world’s two largest economies fell apart in May.

(Reporting by Steve Holland; Writing by Susan Heavey; Editing by Chizu Nomiyama and Jeffrey Benkoe)

Pompeo says China trade deal has ‘got to be right’: interview

FILE PHOTO: U.S. Secretary of State Mike Pompeo speaks to the media at the Department of Foreign Affairs in Pasay City, Metro Manila, Philippines, March 1, 2019. REUTERS/Eloisa Lopez

WASHINGTON (Reuters) – U.S. President Trump will reject a U.S.-China trade deal that is not perfect, but the United States would still keep working on an agreement, U.S. Secretary of State Mike Pompeo said in a media interview.

“Things are in a good place, but it’s got to be right,” Pompeo told Sinclair Broadcasting Group, according to a transcript released by the State Department on Tuesday.

Asked if Trump would walk away from any deal that was not perfect, Pompeo said, “Yes” and pointed to the Republican president’s rejection of an agreement with North Korea at a summit last week in Hanoi.

Trump last week said that he was willing to abandon trade talks with China, but U.S. advisers in recent days have signaled more positive outcomes.

Pompeo made his remarks following stops in Iowa, where he was attending a conference for farmers, who have been caught up in the ongoing trade war with the world’s top two economies.

“This has to work for America. If it doesn’t work, we’ll keep banging away at it. We’re going to get to the right outcome. I’m confident that we will,” Pompeo told Sinclair.

(Reporting by Susan Heavey; Editing by Steve Orlofsky)