Fears about world supply 'knock' the price of oil

14
<pre>Fears about world supply 'knock' the price of oil

LONDON.- Oil futures fell at the end of the day, erasing two days of gains in the wire and reaching maximum levels of four months, before a weakened dollar after the publication of the US inflation data below what was expected.

The Brent crude contract for deliveries in December fell by 1.56 dollars, equivalent to 1.96 percent, to end at 78.18 dollars a barrel in the ICE futures market in London.

On the New York Mercantile Exchange, the barrel of West Texas Intermediate (WTI) for deliveries in November, lost 1.78 dollars, or 2.53 percent, to close at 68.59 dollars, a session minimum.

US crude fell to its lowest level in nearly a month as worries about world supply retreated and a global trade war that reduces demand intensified.

Futures fell despite Iranian crude exports shrinking, although it is unclear whether Saudi Arabia and other large producers can or can not cover any deficit, the International Energy Agency said. Meanwhile, US President Donald Trump tweeted that Chinese markets are "collapsing" as a result of his hardline stance on trade relations between the world's major economies.

US companies in China are being hit by tariffs in the face of growing trade war between Washington and Beijing, according to a survey of hundreds of companies, prompting US business lobbies to urge the administration of President Donald Trump to reconsider your focus

The Trump administration has invited the Chinese authorities to resume trade talks, just as Washington prepares to escalate the trade war with tariffs on Chinese products worth 200 billion dollars.

The Organization of the Petroleum Exporting Countries (OPEC) highlighted a range of risks in the global economy that could affect oil demand, as producers prepared for a late meeting on Wednesday lowered their forecast for growth in world demand for oil. oil in 2019, which points to economic risks.

In its monthly report, OPEC said that world oil demand would increase next year by 1.41 million barrels per day (bpd), 20 thousand barrels less than last month and the second consecutive reduction in the forecast.

For its part, the International Energy Agency said that while it is reducing supply in the oil market and that the global demand for crude would soon reach 100 million barrels per day (bpd), the economic risks are accumulating.

US companies are already being affected by the crossfire in the trade dispute between Washington and Beijing, according to a survey, which has led lobby groups to urge the US administration to reconsider its position.

Another factor that threatens oil prices is the heavy rains that assaulted North Carolina's outside banks as Hurricane Florence continued to move toward the east coast. The track of the storm changed overnight, pointing its fury to Wilmington, North Carolina, with an expected landing for tomorrow.

With information from Reuters, Notimex and Bloomberg.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.