Receive our newsletter – data, insights and analysis delivered to you
  1. News
November 19, 2019

Oil prices fall over limited progress on trade talks

Oil prices have slipped due to concerns on limited progress between the US and China on rolling back trade taxes.

Oil prices have slipped due to concerns on limited progress between the US and China on rolling back trade taxes.

Expectations of a rise in US crude stockpiles also contributed to the fall.

Brent crude futures LCOc1 were down $0.26 at $62.18 a barrel while West Texas Intermediate (WTI) crude dropped $0.32 to $56.73 a barrel, reported Reuters.

Broadcaster CNBC cited a Chinese government source as saying that Chinese officials were troubled by US President Donald Trump’s comment on taxes. Trump had confirmed earlier in November that no agreement has been reached ‘to remove any of the existing tariffs as a condition of signing a phase-one deal’.

CMC Markets Sydney brokerage chief market strategist Michael McCarthy said: “We had reports overnight that the mood in Beijing was pessimistic.

“The lack of announcement is really concerning for the demand outlook … the market is very nervous about the trade talks.”

Content from our partners
Green investment: What gives Scotland multiple advantages
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager

According to a preliminary Reuters poll, US crude inventories are expected to increase for a straight fourth week, which also is the reason for slipped prices.

OANDA New York senior market analyst Edward Moya said: “Unless we get further concrete signs of global growth rally or an extension in production cuts by OPEC+ (the Organization of the Petroleum Exporting Countries and associated producers including Russia), WTI will struggle to attempt to recapture the $60-a-barrel mark.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy