Oil declines with market evaluation of possible trade deal between America and China

Oil prices fell during Thursday’s trade, with investors assessing a possible trade truce between the United States and China, after the announcement by American President Donald Trump to reduce customs duties on Beijing after a meeting with his Chinese counterpart Xi Jinping in South Korea.

Brent crude futures fell 0.85% or 53 cents to $64.37 a barrel, while West Texas Intermediate crude futures fell 49 cents or 0.78% to $59.99 a barrel, according to Bloomberg’s latest update.

And according to the temporary agreement between the two countries, Trump reduced customs duties on Chinese imports from 57% to 47% for a year, against Beijing’s resumption of buying American soybeans, maintaining the flow of exports of rare metals, and taking stricter measures against the illegal trade in alphantane.

According to the “Reuters” agency, Tamas Farga, the manager of the PVM company, said that investors see the agreement as a prelude to tensions and not a structural change in relations between the two countries, pointing out that the drop in prices came despite the large drop in American oil reserves.

وفي سياق تسلسل, the American Federal Reserve Board lowered interest rates يوم برادة بما يتمشي مع استماعة, but he pointed out that this may be the last cut of interest this year, amid fears of the effect of the government shutdown on the availability of economic data.

كلاوديو جاليمبيرتي, كبير عكسوميتين في شركة “ريستاد ينرجي”, said that the federal decision reflects a change in policy that supports gradual growth and inflation, but it does not provide favorable conditions for goods sensitive to economic activity such as oil.

As prices were supported in the previous session, data showed a larger than expected drop in American crude oil inventories, as oil inventories fell by 6.86 million barrels to 416 million barrels during the week ending October 24, compared to expectations for a drop of only 211,000 barrels, according to the US Energy Information Administration.

Brent crude and West Texas are headed for record losses of more than 3% in October, making it the third month in a row of declines, amid concerns about profits on the global market.

ویرکّز المستفورون این علیہ اوبیک+ alliance meeting scheduled for the second of November, where it is expected that the alliance will announce a new increase in supply by 137 thousand barrels per day for next December.