Oil prices fell because of trade war fears haunt markets

Cornelia Mascio
Dicembre 11, 2019

The West Texas Intermediate for January delivery settled 18 cents lower at 59.02 USA dollars a barrel on the New York Mercantile Exchange. As of writing, the WTI was up 0.4% on the day at $59.25.

Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing.

However, according to data released on Sunday, exports from China in November fell 1.1% year on year.

The efforts of OPEC and its Russia-led non-OPEC allies to cut production further will be positive for oil prices, which will stay in the US$55-US$65 per barrel range in the first quarter, Alexander Dyukov, CEO at Russian oil producer Gazprom Neft, said on Tuesday.

Russian oil companies have long balked at continued production cuts, arguing that the cuts give more market share to US shale and hinder Russian firms' production expansion plans.

The market is also on the edge as a deadline looms for other events this week, with the election of England on Thursday and the United States and the European Central Bank meetings.Gazprom Neft CEO Alexander Dyukov on Tuesday a decision by OPEC and its allies to cut output will help support oil prices in $ 55-65 per barrel in the first quarter. -China trade deal could push Brent to $70 a barrel before the second quarter of 2020.

The supply being cut of course is bullish for crude oil, but at the same time there are concerns about demand. If the situation continues to deteriorate between the Americans and the Chinese, it's likely that the demand for crude oil will continue to deteriorate as well.

However, crude oil prices have fallen this week as 15 deadline Des for the next round of United States tariffs on Chinese imports soar in the market.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE