WTi prices slide at the start of week on trade war angst, paring back last week's gains

US oil is struggling in a volatile geopolitical environment, stripping value in the price of a barrel over renewed concerns over energy demand. The US  |  14/10/2019 19:16
  • WTI falling at the start of the week following scepticism over what a 'phase 1' trade deal
  • Bloomberg reported that China asked for more talks with the US before signing the first phase of a trade deal.

US oil is struggling in a volatile geopolitical environment, stripping value in the price of a barrel over renewed concerns over energy demand. The US benchmark, West Texas Intermediate crude is trading down by 2.35% on a spot basis having fallen from a high of $54.87 to a low of $52.76. 

WTI came under pressure at the start of the week following scepticism over what a 'phase 1' trade deal between the Chinese and US would look like.  Considering there had been no agreement 'inked', and only one made in principal, there was always going to be the possibility that a deal may dwindle away in further disagreements or misunderstandings on what had been agreed in principle. The details of the phase 1 deal were not released, so that too leaves the door open for scrutiny by the markets. 

There were reports floating around, originating in a Bloomberg article, that China asked for more talks with the US before signing the first phase of a trade deal. The news weighed on the price of futures with crude for November delivery losing $1.72, or 3.1%, to trade at $52.98 a barrel on the New York Mercantile Exchange, paring back the majority of the 3.6% rise for last week. 

Eyes on OPEC

"Downside momentum signals are still strengthening in crude, with 89% of momentum signals now pointing short while only a 10% of technical analysis signals are suggesting that we are oversold," analysts at TD Securities explained. 

"Barkindo's messaging suggests that OPEC is wary of the 'catastrophic' consequences of a no deal scenario in the US-China trade talks, but it is increasingly unlikely the cartel will be able to deliver the required cuts quickly enough to prevent a loosening of conditions next year, in which case there are concerns that Saudi Arabia could have difficulty persuading allies to deepen their curtailments when the cartel meets in December."

WTI levels

 

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com