Adedapo Adesanya
By Adedapo Adesanya
Oil prices fell more than 2 percent on Monday as a lack of details about the first phase of a trade deal between the United States and China saw prices giving back much of their gains from last week.
It was reported that China asked for more talks with the US before signing phase one of a trade deal that President Donald Trump announced on Friday.
As Monday night, the Brent crude dropped had $1.30 or 2.15 percent to trade at $59.21 per barrel, while the US West Texas Intermediate (WTI) crude had lost $1.23 or 2.25 percent to settle at $53.47 per barrel.
Optimism for the trade deal had driven crude prices higher into the weekend but has since reversed to trade lower as demand fears persist.
China wants to hold further talks with the United States before signing what Mr Trump referred to late last week as “phase one” of a trade deal. This was according to a Bloomberg report monitored by Business Post on Monday, citing people familiar with the matter.
Monday’s losses, according to energy experts, can also be pointed to several high-profile downward revisions to demand expectations in recent weeks, including from the International Energy Agency (IEA) and Organization of the Petroleum Exporting Countries’ (OPEC) Oil Market Report.
Also in the Middle East, the Kingdom of Saudi Arabia has denied any involvement to last week’s apparent attack on an Iranian oil tanker near the Saudi Arabian city of Jeddah.
However, Iran state owned media reports have offered conflicting accounts, first blaming Saudi Arabia before later withdrawing the claim.
Iran’s President Hassan Rouhani said the tanker was hit by at least two rockets and there was video footage of the incident.
Adding to the tensions in the Middle East which remains high, American President Donald Trump vowed on Monday that forthcoming sanctions will be placed on Turkey following his recent withdrawal of U.S. troops from northern Syria.
Oil prices may however see an upward turn this week based on worries that further escalation along the Syrian and Turkish border could affect output or exports from Iraq, providing more support for oil prices as Syrian troops entered a northeastern town on Monday.
