WTI looks to close week on a strong note, adds 3% on Friday

• Trade optimism boosts crude oil prices on Friday.
• Baker Hughes reports the largest weekly decline in rig count in nearly two years.

Crude oil price staged a strong rally on Friday with the barrel of West Texas Intermediate reaching its highest level since December 7 near $54. As of writing, the barrel of WTI was trading at $54.05, adding 3% on a daily basis.

Earlier this week, crude oil stayed in a relatively tight range while investors were trying to figure out how the U.S. - China trade conflict would continue to impact the global demand outlook. With China introducing new stimulus to boost the economy and headlines suggesting progress in trade talks, crude oil gained traction. On Friday, Bloomberg claimed that China was getting ready to increase its imports of the U.S. products with an aim to eliminate the trade imbalances.

Additionally, the weekly report published by Baker Hughes today revealed that the number of active oil rigs decreased to 852 this week from 873 to post its largest decline since February of 2016. Furthermore, OPEC's monthly report on Thursday showed that the monthly production levels fell sharply with the additional output cuts going into effect following record high production levels toward the end of 2018.

Investors will be paying close attention to new developments surrounding the U.S. - China trade war and new signs suggesting that the conflict is drawing to a close could provide more fuel to crude oil's rally.

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