Commodities: Crude oil futures rise as US rig count dips

Energy futures were bouncing back at the end of the week, despite ongoing trade war jitters in global financial markets.

Figures from consultancy Baker Hughes showing that the number of US oil rigs in operation fell by six over the latest week to reach 764 was pushing front month West Texas Intermediate crude oil futures higher by 3.94% to $54.61 a barrel on NYMEX, alongside a 2.23% rise for October Brent to $58.66.

Weighing on investor sentiment, on Friday afternoon the US President broached the possibility that trade talks scheduled with China for September might not go ahead and said that the US was not "going to do business with [Chinese telecommunications champion] Huawei".

Overnight, Bloomberg had already reported that the White House had frozen plans to grant licenses to some US companies to be able restart some trading with Chinese telecommunications champion Huawei.

However, a later report from Fox Business News appeared to indicate that as far Huawei was concerned, Trump was only referring to US government agencies having any dealings with the company.

Regarding the wider talks with China, Trump said: "We are talking to China; we are not ready to make a deal, but we'll see what happens [...] China wants to do something, but I’m not doing anything yet. Twenty-five years of abuse. I'm not ready so fast."

Against that backdrop, as of 1925 BST, the US dollar spot index was drifting 0.13% lower to 97.4910 and the Bloomberg commodity index was adding 0.53% to 77.45.

Commenting on the mood in markets, traders at Sucden Financial said: "A relatively quiet end to a rollercoaster week on the financial markets where trade tensions have continued to dominate the sentiment.

"The pm session saw equity indices weaken again as negative comments from Pres Trump re upcoming China trade talks spooked the market."

Yet most LME base metals contracts finished the London session higher, with three-month copper futures rising from $5,779.0 per metric tonne to $5,755 per tonne.

December gold futures on COMEX on the other hand were drifting lower by 0.04% to $1,508.90/oz., having earlier traded as high as $1,521.10/oz..