Crude oil inches lower as trade deal hopes wane

by   |  VIEW 117
Crude oil inches lower as trade deal hopes wane

On Monday, the 7th of October 2019, both UK and US crude oil futures’ prices edged lower despite a buoyant opening of the day, as fading hopes of a US-China trade deal in a near-term outlook pared earlier gains after US Commerce Department had blacklisted 29 more Chinese companies and state government’s over mistreatment of Chinese ethnic Muslim communities, in particular the Uighurs.

Aside from that, a rise in the US crude oil inventories last week had dimmed crude oil futures’ price outlook further, adding to investors’ woes amid a faltering global economy. As beforementioned, hopes of US-China trade deal had lifted both global equities alongside crude oil earlier in the session following White House Economic Advisor, Larry Kudlow’s upbeat comments over reaching a favourable accord with Beijing, however equities alongside crude oil futures’ prices started off to pare earlier gains after Chinese Commerce Ministry had poured cold water on fresh optimisms of a trade deal saying a deal with the United States could only be reached at an even playing ground.

Aside from that, US Commerce Department’s latest ban on 29 Chinese companies alongside an autonomous Chinese Government had tempered investors’ optimism, while adding that a major Sino-US trade deal would be highly unlikely, a partner at Again Capital LLC in New York, John Kilduff said, “That casts a big of a pall over the trade talks and suggests they’re not inclined to do a big deal.

” Quoting statistics, UK crude ended Monday’s (October 7th) market down by 0.03 per cent to $58.35 a barrel after reaching a session high of $59.68 earlier in the session, while US West Texas Intermediate Crude Futures’ wrapped up the day 0.11 per cent lower to settle down at $52.75 per barrel after soaring more than 2 per cent to a session high of $54.06 a barrel.