Oil Inventory Report: Prices Fall as Brent Drizzle Upon Reaching $70
During Friday session, oil prices were down including international benchmark Brent, gliding upon reaching more than $70. Drops occur as traders fear on the United States and China trade talk progress on to ending their trade disputes.
Furthermore, Brent crude futures dropped at about 0.3 percent amounting to $69.17 per barrel during 00:40. On Thursday, the international benchmark came close to about 9 cents higher upon touching $70.03, its highest since November last year.
Elsewhere, the United States West Texas Intermediate (WTI) crude went down by 2 cents then amounting to $62.08. On Wednesday, it reached the amount of $62.08, its highest since November last year. However, the following day it fell by 36 cents.
The US-China Trade Talks
Consequently, United States President Donald Trump on Thursday said their trade deal with China is at its peak and could be done in about four weeks. However, according to Trump, he’s to keep his point in including intellectual property theft and tariffs.
Alfonso Esparza, senior market analyst at OANDA, stated in a note; “A summit in April is looking unlikely despite the comments from both sides on how well the negotiations are going… After much talk, there is still nothing to show for it, which is once again putting downward pressure on energy demand going forward.”
OPEC and Non-OPEC production cuts
This year, Brent crude gains near 30 percent as WTI reached close 40 percent gains. Meanwhile, the United States sanctions on Iran and Venezuela with the OPEC supply cuts help increase the global demands.
However this week, there are bearish indicators which include the lower German factory orders. Those put a cap on gains. A data revealed on Thursday says that the German orders drop during the month of February at its sharpest rate for more than two years.