Oil prices dip as US-China trade deal hopes fade

13 November 2019 (Last Updated November 13th, 2019 12:12)

Oil prices have slipped amid fading prospects for a trade deal between the US and China.

Oil prices have slipped amid fading prospects for a trade deal between the US and China.

US President Donald Trump said that the two biggest economies are close to concluding a trade deal, but did not reveal the date or venue for the signing ceremony with China. Brent crude futures were down 32 cents to $61.74 a barrel, while US West Texas Intermediate (WTI) crude CLc1 reduced by 26 cents to $56.54 per barrel, reported Reuters.

International Energy Agency’s (IEA) prediction on lower global oil demand growth after 2025 is also an added reason for the fall of oil prices in the market. The agency added that the US will still be accountable for 85% of the increase in global oil output and 30% hike in gas until 2030.

IEA executive director Fatih Birol said: “The effects have been striking, with U.S. shale now acting as a strong counterweight to efforts to manage oil markets.

According to a preliminary Reuters poll, crude stockpiles rose for a straight third week, while refined products inventories declined a little. Meanwhile, Keystone oil pipeline with 590,000bpd capacity has resumed operations following an oil spill two weeks ago in North Dakota, US.

Reuters cited ANZ analysts as saying: “We believe the production curbs could be extended beyond Q1 2020, although deeper cuts are unlikely.”