Crude oil rates decreased marginally on Friday, as issues about possible drop in demand due to trade war tensions slightly surpassed recent data revealing a fall in unrefined stockpiles.
Information launched by the Energy Information Administration on Thursday showed crude stockpiles in the U.S. to have declined by 4.3 million barrels in the week ended August 31. That was a much larger than expected drop.
Crude oil futures for October delivery settled at $67.75 a barrel, down 2 cents, from previous close. For the week, crude oil future shed about 2.9%.
U.S.-China trade stress have intensified today after U.S. President Donald Trump apparently revealed that his administration plans to go on with tariffs on US$ 200 billion worth of Chinese imports.
He apparently included, “And I hate to state that, but behind that, there’s another US$ 267 billion ready to go on brief notification if I desire. That totally changes the equation.”
China had actually currently alerted that it will be forced to retaliate if the United States implements any new tariff steps.
The Chinese economy has decreased due to trade war and more problems could result in a significant drop in China’s oil imports.
On the other hand, Trump also remarked that he was “still bothered by the regards to U.S. trade with Japan.” This recommends more is showing up on the trade war front. A full-blown trade war could significantly injure the outlook for worldwide economic development and result in a drop in demand for crude oil.
However, with U.S. sanctions against Iranian oil set to work in November and reports about supply interruptions once in a while in Libya and Venezuela likely, traders are hoping that crude oil costs might edge greater moving forward.
A report from Baker Hughes, launched at 1 PM ET, showed that the variety of active U.S. rigs drilling for oil was down by 2 to 860 this week. Last week, the rig count had actually edged up by 2. With this week’s drop, the total active U.S. rig count, including oil and natural-gas rigs, remains unchanged at 1,048, the report from Baker Hughes exposes.
The material has been supplied by InstaForex Business – www.instaforex.com