Energy Prospectus

U.S.-China near trade deal. The Wall Street Journal reported that the U.S. and China are close to a trade deal that would consist of China lowering tariffs and restrictions on American farm, chemical, auto and other products while the U.S. would remove most or all tariffs put on Chinese goods last year. Obstacles remain and both sides face domestic pressure not to concede too much. The deal could include an $18 billion purchase for LNG from Cheniere Energy. Meanwhile, Reuters reports that China will probably make some concessions in the trade negotiations in order to give the U.S. a face-saving win, but Beijing will not fundamentally alter the way it conducts trade in the way that the U.S. government wants.

Bulls Battle Bears As Oil Prices Stall

The Wall Street Journal reported that the U.S. and China are close to a trade deal that would consist of China lowering tariffs and restrictions on American farm, chemical, auto and other products while the U.S. would remove most or all tariffs put on Chinese goods last year. Obstacles remain and both sides face domestic pressure not to concede too much. The deal could include an $18 billion purchase for LNG from Cheniere Energy. Meanwhile, Reuters reports that China will probably make some concessions in the trade negotiations in order to give the U.S. a face-saving win, but Beijing will not fundamentally alter the way it conducts trade in the way that the U.S. government wants. he U.S. Department of Energy said last week that it was offering up six million barrels of light sweet oil from the strategic petroleum reserve (SPR). The sale was the result of previously signed legislation although it could be fortuitously timed for the spring as the oil market begins to tighten. The OPEC+ coalition is likely to defer a major policy decision until its June meeting in Vienna, rather than make an early decision in April as was thought to be possible. Sources told Reuters that as of now an extension of the production cuts is the most likely scenario.