WTI Crude: Prices remain inclined waiting final terms on US-China trade talks
The crude oil prices to remain at range bound nearing the final terms on the trade talks. Currently, U.S. crude oil production continuously increases. As a result, market concerns also rises.
Since last week, crude oil price gains as expectations on U.S.-China trade deal escalates. Meanwhile, the dollar declines to support the incline in the crude oil prices. During the mid-week, crude oil traded at a range as markets wait on the latest inventory data for further direction.
The API reports a build-up in crude oil inventories. But that was smaller than expected. But still, crude oil prices rally. Positive views on OPEC could re-balance the market of crude oil leading to a notable increase in the price.
The trade talks
The trade talk between the United States and China are going smoothly. At the same time, the viewpoint on the matter was bullish. Despite that, an increase in the EIA’s crude oil inventories contained a gain in crude oil prices. The United States crude oil production reaches twelve barrels a day record. That impacts the crude oil prices.
Base metal price updates
Just last week, base metals recover on the presence of weakness in the dollar. Positive views on the trade talks between the US and China leads the base metal higher. Prevention of mine by the India Supreme court brings the world’s copper supply under two percent.
The export permit of PT Freeport Indonesia in copper expired last February 15. The company hasn’t received any export recommendations coming from the mining ministry. That is to say, could help the company obtain a new permit.
Consequently, the two factors lead to a notable increase in copper prices. That despite the expectation of supply disruptions. Meanwhile, a profit booking upon the notable rally can bring gains to the market.
Crude oil futures
The crude oil could continue to be range bound in the near term. Currently, the United States production of oil is in a static increase. As a result, it becomes a concern for the market. The crude oil output expects to increase in the next months because of the boom.
Meanwhile, the non-OPEC supply expects to reach an average of 64.34 million barrels a day for 2019. That was an increase from the 62.17 million barrel a day last year. Although positive views on the trade deal are present, there is no guarantee it would last or not. The crude oil inventories are a bit volatile. But expectations on OPEC’s capability to rebalance the market can support crude oil.
The present crisis in Venezuela is going deep. That could lead to supply disruption. Even so, there is no clear path for the crude as of the moment. Above all, the short-term outlook on crude oil performance is diverse.