The speculations about the possible lifting some tariffs imposed on Chinese buoyed financial markets and gave a lift to oil prices as well. Despite the rumors were denied, investors continue to raise hopes for resolving the trade issues between the two countries that proceed to another phase of negotiations in late January.
Global investor sentiment continues to set the tone for Brent that has become more sensitive to risk trends recently. Brent poised for weekly gains of more than 2% after two weeks of strong recovery. Technically, the prices need to overcome the $62.50 resistance to target the $65 handle. But at the moment, there bulls have no enough incentive to push the contracts aggressively higher. Moreover, further attempts to break above $62 could attract a partial profit-taking in the near term.