2019.12.1319:06:00UTC+00Crude Oil Futures Settle Notably Higher

Crude oil prices moved higher on Friday, as worries about the outlook for energy demand subsided a bit on reports the U.S. and China have agreed on text of a phase one trade deal.

Data released by Baker Hughes showed the number of active U.S. rigs drilling for oil rose by four to 667 this week, rising for the first time after seven straight weeks.

West Texas Intermediate Crude oil futures for January ended up $0.89, or about 1.5%, at $60.07 a barrel, the highest settlement since mid-September.

On Thursday, WTI Crude oil futures for January ended up $0.42, or about 0.7%, at $59.18 a barrel.

For the week, WTI Crude oil futures gained 1.5%.

As part of the trade agreement, the U.S. will not go through with the threatened tariffs set to take effect on Sunday and begin phasing out existing tariffs.

Tariffs imposed on approximately $120 billion worth of Chinese goods on September 1st will be also cut to 7.5% from 15%, although a 25% tariff on approximately $250 billion worth of Chinese goods will remain in place.

In return, the Chinese have reportedly agreed to many structural changes and massive purchases of U.S. agricultural products, energy, and manufactured goods.

"We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election. This is an amazing deal for all. Thank you!" U.S. President Donald Trump tweeted this morning.