Due to fear of decreasing demand due to trade war
In the light of US President Donald Trump’s imbalanced policies over customs duties expressing concern about global economic growth and fuel demand, oil prices have fallen slightly in the early Asian transactions on Wednesday.
As of 00:15 GMT, Brent Crude Futures fell 17 cents, or 0.26 percent to $ 64.08 per barrel. US West Texas Intermediate Crude Futures declined 12 cents (0.2 %) to a record 60.3. Two records have recorded the lowest solution price from April 10 in the previous session.
Reuters poll showed that Trump’s customs duties on imports to the United States have increased the chance of sliding the global economy this year.
China – the largest of the fees – responded by imposing customs duties on American imports, leading to a trade war between two largest oil consumers.
Daniel Heinz, a commodity expert in ANS Bank, said that concerns about the demand in the light of the trade war have influenced the courage of investors.
“There are also fears that the recent improvement in the American economic data is temporary. Depending on the storage of customs duties, it seems to be in the process of declining now.”
According to data published on Tuesday, the US consumer confidence has declined to its lowest level in April in almost 5 years, due to an increase in concerns about customs duties.
In this offer, US crude oil reserves rose 3.8 million barrels last week, with market sources quoting data of the American Petroleum Institute on Tuesday.
The US government data on stocks is to be issued on Wednesday to 14:30 GM.
Analysts, Reuters, and 400,000 barrels in US crude oil reserves last week are expecting their views.
OPECE prices have also been affected by the increase in production from the OPEC Plus Alliance, including oil exporting countries (OPEC) and its allies, especially in the light of the pressure of the United States and China.
Sources told Reuters last week that many members of OPEC Plus propose production for the second consecutive month in June.
