Oil price falls following US-China trade deal uncertainty

Oil prices fell by more than 2 per cent in mid-morning trading, with investors unclear as to the progress of Sino-American trade talks

The 3 per cent rise in the oil price at the end last week has been undercut since the start of trading, with investors unsure as to the outcome of US-China trade talks.

Brent crude oil futures previously closed at $60.50 a barrel but stood at $59.08 by 14:00 (GMT), a drop of around 2.25 per cent.

West Texas Intermediate (WTI) crude oil futures stood at $53.38 at the same time, a loss of $1.27 a barrel on the previous close.

Initial progress in talks between the United States and China contributed somewhat to last week’s rise in oil prices, with America announcing a suspension to this week’s planned tariff hikes. Admittedly existing tariffs remain in place.

What is your sentiment on Oil - Brent?

Vote to see community's results!

Oil’s gains last week can mostly be attributed to a terrorist attack on an Iranian oil tanker and the announcement that the United States will deploy almost 2,000 additional troops to Saudi Arabia.

With Turkey’s invasion of northern Syria, there are concerns that Iraq’s oil exports could be affected. Tensions in the Middle East tend to increase the oil price.

The region’s major oil producers are seemingly committed to limit global oil production. Saudi Arabia’s new energy minister recently reiterated the intention of OPEC and its allies to commit to cuts and thus keep prices relatively high. Prince Abdulaziz bin Salman is said to have observed recently that the “Oil market is not stable yet. We see the volatility.”

Brent Crude Oil Spot
Daily change
Low: 107.51
High: 111.44
US Crude Oil Spot
Daily change
Low: 103.08
High: 107.48
The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image