Switzerland Meeting: Capturing headlines for much of the week is the highly anticipated meeting between the United States and China. The meeting is expected to cover trade grievances and have given markets hope that progress toward a deal in this meeting would lead to lowering of tariffs and less restrictive and volatile global trade environment - spurring energy demand.  

Chinese Crude Imports: China's crude oil import volumes for last month showed a contraction compared to the month prior, however, rose 7.5% compared to the year earlier. Data shows that an increase in imports from sanctioned countries (Russia and Iran) boosted inventories during the month. Year to date exports of refined products are off almost 10% compared to the year prior.

Trump Tariffs: This morning, Donald Trump made comments about the coming trade meeting with China. In the Truth social post, Trump mentioned that "80% on China seems right.."  regarding the tariff levels on the country. The comments could be a slight tell on what objectives the U.S. has for the meeting. Current duties on Chinese  imports are 145%.

Market Overview: News on the China/U.S. meeting this weekend have been the focal point of headlines for much of the week. Markets have appeared to take the meeting optimistically, and energy contracts appear to have taken an optimistic approach and price in anticipated demand resulting from a positive meeting. Signals already this morning point to a potential tariff reduction on Chinese goods, and as some suspect a cooling of the trade war that started earlier this year. 

CLc1 (WTI) Crude Chart (Daily)

WTI popped back above the $60 level this morning after closing at $59.91 during yesterday's session. Crude prices have been supported this week due to hopes of trade tensions thawing between the two largest economies in the world. The run up appears to be struggling so far around the $61 level of resistance, but could likely gain support if the meeting referred to earlier goes well. Increasing crude values have also taken products higher this week. Keeping a lid on prices are supply and demand concerns - OPEC+ announced earlier this week that they will continue to increase production targets and creating concerns that the global market will see oversupplied conditions given demand concerns.

Futures once again jumped higher today. Sentiment regarding the meeting between Chinese and American officials in Switzerland tomorrow have brought futures up over the last couple sessions. Markets are looking at the meeting with optimism and appear to be pricing in the thaw between the two countries who have been in a trade war since the Trump administration issued tariffs on China earlier this year. Additional optimism that trade policy might be shifting back toward encouraging free trade, the U.S. and UK reached some agreements on tariffs implemented by the Trump Administration. The reduction in tariffs on automobiles and steel and aluminum coming to the United States in exchange for access to some agriculture markets. All said, the U.S. has a trade surplus with UK - bringing skepticism on the strategic importance of the agreement.