Oil prices firm, but trade dispute and Syria keep market on edge

CNBC

  • Oil markets stabilized after slumping around 2 percent last Friday.
  • Markets eyed the situation in Syria after reports – denied by the Pentagon – that U.S. forces had struck a major air base there.
  • Oil prices fell about 2 percent on Friday after U.S. President Donald Trump threatened new tariffs on China.

An oil pumpjack operates near Williston, North Dakota.

Andrew Cullen | Reuters
An oil pumpjack operates near Williston, North Dakota.

Oil markets stabilized on Monday after slumping around 2 percent last Friday on concerns over an intensifying trade dispute between the United States and China, as well as increased U.S. drilling activity.

Markets on Monday were also eyeing the situation in Syria after reports – denied by the Pentagon – that U.S. forces had struck a major air base there.

U.S. WTI crude futures were at $62.34 a barrel at 0355 GMT, up 28 cents, or 0.45 percent, from their previous settlement.

Brent crude futures were at $67.43 per barrel, up 32 cents, or 0.5 percent.

Oil prices fell about 2 percent on Friday after U.S. President Donald Trump threatened new tariffs on China, reigniting fears of a trade war between the world’s two largest economies that could hurt global growth.

With Chinese markets closed last Thursday and Friday, Shanghai crude futures played catch-up on Monday, dropping 0.6 percent to around 400 yuan ($63.43) per barrel.

“Oil prices have been susceptible to the brewing trade tensions between China and the U.S….However, fundamental support levels have been demonstrated with OPEC’s suggestion on an production limit extension into 2019,” said Singapore-based Phillip Futures.

Oil prices have generally been supported by healthy demand as well as by supply restraint led by the Organization of the Petroleum Exporting Countries, which started in 2017 in order to rein in oversupply and prop up prices.

In physical oil markets, OPEC’s number two producer Iraq said on Monday that it is keeping prices for its crude supplies in May steady.

In the United States, drillers added 11 rigs looking for new production in the week to April 6, bringing the total count to 808, the highest level since March 2015, General Electric’s Baker Hughes energy services firm said on Friday.

As a result, U.S. exports have soared in recent months, “more than offsetting the Venezuelan supply disruption” as a result of the economic crisis in the South American OPEC-member, Innes said.

Author:

BuySellCrudeOil acts as a bridge between Buyers and Sellers of Oil and Gas products.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s