Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 18 September 09:06 (GMT -05:00)



Stock and commodities markets

US-China Trade War Drops Oil Prices


 

The trade war between the United States and China is underway. Yet, it has already led to some consequences. For example, international experts say that this war has been the reason for the current weakness of the global market of cryptocurrencies. At the same times, Finanz experts claim that this trade war has dropped oil prices.
 
A couple of days ago, the price of Brent oil dropped down 6,69 dollars per barrel, which is the current 2-week low. In 24 hours, it has lost 1,8% and 4,1% since the start of the trading week. At the same time WTI oil has lost over 4,5% of its value. This is the second biggest daily price drop for the last 12 months.

Once again, they say that the key reason for this market drop is the trade war between the world’s two biggest economies, the USA and China. The other day, the USA revealed the list of 1300 Chinese products with increased import duties (up to 25% for some of them). In response, China did the same thing for American products to the amount of 50 billion dollars, including agricultural, automotive and airspace products from the USA.

Some experts claim that the trade war may seriously affect oil prices and therefore reduce to nothing all the efforts made by the OPEC+ participants to cut the global commercial inventories of crude oil and restore the market balance.

By the way, the OPEC+ deal got its status undermined seriously by the participants themselves. Firstly, Russian companies failed to comply with their obligations in March by cutting their daily production by 270K b/d instead of 300K b/d. Secondly, even though Saudi Arabia beat the target in March, the Saudis keep on dumping oil prices for Asian importers. At the same time, American oil companies keep on cutting down on their imports.

As a result, there is a big imbalance emerging in the market of oil futures today. The amount of long positions is 13 times as big as the one of short positions, which bring profit if oil prices go down. Others say that hedge funds may start selling out oil futures, which may bring Brent oil down to 60 dollars per barrel in Q2 2018.

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

China declares crude oil war on USA

Beijing is now considering the opportunity to cut down on the export of crude oil from the United States in response to Washington's decision to raise the import duties on Chinese products. The energy war between the USa and China may also affect Russia.

Publication date: 11 September 11:55 AM

China's dependence on crude oil increases fast

Over the last few years, China has been getting more and more dependent on the import of crude oil and some other energy carriers. Most of those oil imports are of Russian origin. the thing is that CHina's domestic oil and natural gas production has been contracting over the last few years while the country's production capacities have increased and are now in high demand of more energy.

Publication date: 11 September 10:40 AM

Trump Is Close to His Goal - Oil at $50/b

According to Finanz, President Trump is close to making oil prices drop down to $50/b like never before. Last week was bearish for the global market of crude oil. This happened mainly due to the agreement between the U.S. president and the King of Saudi Arabia.

Publication date: 23 August 11:36 AM

Investment Banks Raise Their Oil Forecasts

The world's biggest investment banks have raised their oil forecasts again, for the 10th month in a row, The Wall Street Journal reports. 

Publication date: 02 August 12:00 PM

Oil Prices May Skyrocket to $400/b if Iran Blocks the Strait of Hormuz

Blocking the Strait of Hormuz will inevitably trigger a global energy crisis while pushing oil prices to unseen heights, maybe even all the way up to $400/b. This is what the experts interviewed by PRIME think about the situation.

Publication date: 19 July 09:45 AM

Higher OPEC+ Production Quotas Won’t Raise Oil Prices, Kudrin Says

Chairman of the Russian Accounts Chamber Alexei Kudrin assumes that the OPEC+ participants’ decision to increase the daily oil production quotas won’t affect international oil prices.

Publication date: 16 July 09:58 AM

Trump Urges OPEC to Raise Their Daily Oil Production by 2M Barrels

Donald Trump claims that the OPEC should raise their daily oil production by 2 million barrels. During his interview to Fox News, he accused the oil cartel of manipulating oil prices.

Publication date: 05 July 11:47 AM

OPEC+ Participants Want to Make the Deal Indefinite but Without Quotes

According to Russian Minister of Energy Alexander Novak, the leaders of Russia and Saudi Arabia decided to extend the OPEC+ deal. The minister said that this decision to make the deal indefinite in time took place not so long ago in Moscow. 

Publication date: 27 June 11:27 AM

Saudi Arabia Raises Oil Prices for Asian and European Buyers

Saudi Arabia is reported to have raised oil prices for Asian and European importers. This is confirmed by Bloomberg.

Publication date: 09 June 10:26 PM

Market Players Play Oil Price Guessing Games

The international market of crude oil seems to be in panic. Yet, the panic is snowballing. The reason for that is said to be the statement made by Russian Energy Minister Alexander Novak about the possibility of easing the OPEC+ deal in June 2018, which came as a surprise to the international trading community.

 
Publication date: 29 May 01:41 PM