On Wednesday, the 4th of September 2019, crude oil futures’ prices had put an end to its three-day-long losing streak over an overwhelming fret that the global economy was losing much of its steams at a quicker pace than estimated and climbed more than 4 per cent, buoyed by a broad-based market pickup stemmed of a raft of positive economic news from China.
In point of fact, followed by the release of an upbeat China data during early Asian trading hours, equity indexes across the world had rebounded sharply alongside crude oil price, as China has been the world’s largest importer and the second-largest consumer of crude oil behind United States for more than a decade, which in effect conventionally coincide China data and crude oil prices.
Aside from an upbeat Caixin China PMI (Purchasing Managers’ Index) for August, which posted an uplift to 52.1 from a prior figure of 51.6 a month earlier, meanwhile beating an analysts’ estimate of 51.7, risk appetites were revived further after Hong Kong had withdrawn its discontent over China extradition bill that had been the core of its recent protest.
Followed by reveal of a stack of upscaled China data, UK Crude gained 4.2 per cent to wrap up Wednesday’s (September 4th) market at $60.70 per barrel, while US West Texas Intermediate Crude mushroomed more than 4.3 per cent to settle down at $56.26 a barrel.
Nonetheless, despite Wednesday’s (Sept. 4th) robust upsurge of crude oil price, referring to a basket of disappointing fundamentals of the oil market, a senior market analyst at OANDA in New York, Edward Moya said in a client report later on Wednesday (Sept.
4th), “Oil prices however remain focused on the trade war and the longer we don’t see a date scheduled for a face-to-face meeting between Chinese and U.S. officials, the greater the odds we could see a retest of the summer lows”.