Oil decreasing as demand expectations decline due to financial tensions
Crude oil prices fell on Tuesday as investors’ demand growth has fallen due to the continuing trade war between the United States and China in the world’s two largest economies.
Brent crude futures fell 44 cents or 0.7 percent, $ 65.42 per barrel by 04:00 GMT. The US West Texas Intermediate Raw Futures fell 40 cents or 0.6 percent to $ 61.65 per barrel. These two records fell to more than 1 dollars on Monday.
“Markets are closely monitoring trade talks between the United States and China, and the decline in trade relations between the two largest economies in the world can push the global economy towards the recession,” said Priyanka Sashdiva, a major market analyst of Philip Nova.
The lack of confidence in the future and the lack of concrete indicators of demand recovering in the continental China will be shadowy on oil prices.
Most of the economists in the Reuters Pole said that US President Donald Trump’s attempt to rebuild global trade to impose customs duties on all American imports to create a great danger this year is a great danger.
China replied to customs duties on the most affected China and American imports, leading to a trade war between two largest oil consumption countries. It triggered analysts to severely reduce oil and its prices.
On Monday, the Barclays 2025 reduced its expectations to $ 4 for $ 4 for $ 4, which has reached $ 70 per barrel, referring to the main factors behind the surplus of a million barrels oil supply this year.
Meanwhile, many members of OPEC Plus, which have petroleum exporting countries (OPEC) and its allies, suggest that the growth growth of production in a row in June respectively.
“If exporting countries strengthen their production, it is possible to decrease in oil prices,” said oil analyst Philip Verlier.
According to a preliminary survey conducted by Reuters on Monday, US crude oil reserves have increased by 500,000 barrels per week for the week ended April 15.
The American Petroleum Institute, an industrial group, publishes expectations of US oil stocks on Tuesday, and official figures from the Energy Information Administration will be issued on Wednesday.
