A protracted trade war between China and the United States has been weighing on the demand outlook for oil. The US and China are struggling to end the damaging trade conflict when the summit at which they were supposed to meet was canceled on Wednesday because of violent protests in host nation Chile. WTI Crude is $54.46; Brent is $60.55 this morning.
U.S. crude inventories fell 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts’ expectations for an increase of 494,000 barrels, according to the American Petroleum Institute (API). WTI Crude is $55.53; Brent is $61.71 this morning.
OPEC and its allies are due to meet in December to discuss whether steeper cuts to oil supply will be needed to shore up prices amid a surplus and signs of weaker demand. WTI Crude is $54.94; Brent is $60.85 this morning.
Looking forward, if trade talks with China continue to progress, and there is full agreement to phase one of the deal, we should see improvement in investor sentiment say analysts. WTI Crude is $56.45; Brent is $61.87 this morning.
Near-term fundamentals are actually tight. If you were to see any positive trading dialogue emerge, then you could see a quick switch in investor positioning say some market analysts. WTI Crude is $56.11; Brent is $61.60 this morning.
Click here to view our Offerings.