2019.12.1619:26:00UTC+00Crude Oil Prices Inch Up To New Three-Month High

Crude oil prices moved modestly higher during trading on Monday, extending the notable upward move seen over the two previous sessions.

After jumping $0.89 to $60.07 a barrel last Friday, crude oil for January delivery edged up $0.14 to a three-month closing high of $60.21 a barrel.

The price of crude oil continued to benefit from optimism about the outlook for energy demand after last week's news that the U.S. and China finally reached an agreement on a phase one trade deal.

The agreement, announced by U.S. and Chinese officials last Friday, includes suspending planned tariffs on Chinese goods as well as scaling back existing tariffs in exchange for Chinese structural reforms and purchases of U.S. goods.

The trade deal eliminates a lot of uncertainty, although traders still seem somewhat wary as they await more details about the agreement.

Additionally, the agreement does not completely end the U.S.-China trade war, as some tariffs will remain in place as negotiators begin phase two talks.

On the U.S. economic front, a report from the National Association of Homebuilder showing a substantial improvement in homebuilder confidence has added to the positive sentiment on Wall Street.

The report said the NAHB/Wells Fargo Housing Market Index spiked to 76 in December from an upwardly revised 71 in November.

Economists had expected the index to come in unchanged compared to the 70 originally reported for the previous month.

With the unexpected jump, the housing market index reached its highest level since hitting 77 in June of 1999.