On Monday, the 11th of November 2019, both Brent and US crude had dropped more than 1 per cent on mid-day European trading hours over renewed concerns of a Sino-US trade deal following controversial comments from US President Donald Trump over a China tariff roll back, while lingering worries of oversupply amid a strong US inventory build had been weighing on to markets.
Aside from earlier controversy on a China tariff roll back, fanning the flames of an excruciating Sino-US trade war further, US President Donald Trump had been quoted saying on Saturday (November 11th) that the United States would only make a deal with Beijing with it was right for America.
Besides, Trump had also added that media reports had been incorrect on United States’ desire for a “Phase One” trade accord, adding that export tariffs on Chinese goods were adding billions of additional dollars into US coffer, which eventually had heightened up risk-appetite and catapulted safe-haven gold prices higher, while drowning the crude oil prices on renewed threat of a global-scale slowdown, almost entirely attributed from a 16-month-long Sino-US trade war.
Meanwhile, addressing to China’s dismal factory data adding further weakness into the global economic outlook, an analyst at Phillip Futures, Samuel Siew wrote in a client note, “China delivered a massive deflationary shock in its factories, providing a sombre tone towards the fragile state of the global economy”.
Quoting statistics, during preparation of the report, at mid-day European trading hours, UK crude was plunged 1.1 per cent to $61.82 per barrel, while US crude was trading at 1.1 per cent to $56.61 a barrel after posting a weekly rise of 1.9 per cent last week.