Oil prices dip on wilting hopes for U.S.-China trade deal

By on

Oil prices eased on Thursday on the expectations that the resumption of U.S.-China talks will not end the trade war between the world’s two largest oil consumers, exacerbating anxiety over the global economy and fuel demand.

China, the world’s biggest oil importer, has lowered expectations of a deal from the talks on Thursday and Friday to head off U.S. President Donald Trump’s proposed increase to the tariff rate on about $250 billion of Chinese goods to 30% from 25% on Oct. 15 if there are no signs of progress.

The dispute has disrupted global supply chains and slowed growth in the world’s two largest economies, curbing fuel consumption in both.

Global benchmark Brent crude futures LCOc1 fell 9 cents, or 0.2%, to $58.23 a barrel by 0654 GMT. U.S. West Texas Intermediate (WTI) futures CLc1 were down 12 cents, or 0.2%, at $52.47.

Both benchmarks are down more than 20% from April peaks.

The front-month spread between November and December U.S. crude futures CLc1-CLc2 traded at a discount of 2 cents a barrel on Thursday. The spread had slipped into contango – where future prices are higher than nearby prices – on Wednesday for the first time since Sept. 19.

“Should U.S.-China trade negotiations take a turn for the worse, market pessimism will impose sharp negative pressures on oil prices, said Benjamin Lu, commodities analyst at Phillip Futures in Singapore.

Prices were also weighed down by a report of rising stockpiles in the United States, currently the world’s biggest oil producer.

Additionally, the Organization of the Petroleum Exporting Countries (OPEC) quietly adjusted its production pact to allow Nigeria to raise its output, adding more supply.

OPEC member Venezuela will also increase its exports despite U.S. economic sanctions that have curtailed shipments.

Indian refiner Reliance Industries plans to start loading Venezuelan crude after a four-month pause, in a further sign of expanding crude supply to the market.



ABOUT: Nana Kwesi Coomson

[email protected]

An Entrepreneur, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. He holds first degree in Bachelor of Arts from the University of Ghana; Political Science (major) and History (minor). In 2015, he won a £35,000 postgraduate scholarship to study MSc Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) at the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track. His mentors are Rupert Murdoch, Warren Buffet, Sam Jonah, Kwaku Sakyi Addo and Piers Morgan

view all posts by: Nana Kwesi Coomson  

Leave a Reply

Your email address will not be published. Required fields are marked *


233times.com is a Ghanaian media house which serves as a major source of exclusive interviews ,music and video downloads, news and more.

233times.com reports on major events,news covering entertainment, politics, sports, etc from within Ghana, Africa and beyond.

We have a platform for the amateur artistes to portray their staggering talents ...more...


facebook twitter youtube google plus linkedIn

To advertise with us or make enquiries, please visit 233times.com/advertise or call +233266121799 (Selorm), +233248185848 (Nana Kwesi)