Oil Prices Move in Different Directions on Trump’s Remarks
By Adedapo Adesanya
Oil futures moved in different directions on Tuesday as comments from President of the United States, Mr Donald Trump, on the ongoing trade talks with China triggered panic in the global market.
The performance of crude oil at the international market also became mixed as observers anticipate the much-awaited meeting of members and allies of the Organisation of the Petroleum Exporting Countries (OPEC), which kicks off on Thursday in Austria. The group is planning to cut supply at the market so as to support prices.
As at yesterday night, the Brent crude, which is the global oil benchmark, was trading down 4 Cents or 0.07 percent to trade at $60.88 per barrel, while the US Crude, West Texas Intermediate (WTI), was trading up by 21 Cents or 0.38 percent at $56.17 per barrel.
In addition, the OPEC Basket Crude, despite its day late delay result, was also trading down at $62.50 per barrel.
Business Post gathered that oil prices had been faring well earlier in the day on the expectations of a deeper supply cut by an additional 400,000 barrels per day until June 2020 to the 1.2 million already in agreement set to expire in March.
However, fresh comments about the US-China trade deal, which has had effect on oil prices for the past 16 months, took a hit as President Trump said that signing of a first phase of the deal could wait till next year.
Mr Trump said on Tuesday that the trade agreement between the two largest world economies might have to wait until after the US presidential election in November 2020.
According to Reuters, “I have no deadline, no,” President Trump was quoted in London, where he was due to attend a meeting of NATO leaders. “In some ways, I like the idea of waiting until after the election for the China deal.”
OPEC ministers will, however, meet in Vienna on Thursday (December 5) and the larger OPEC+ group, on Friday (December 6), oil may perform better with a decision to extend cuts, with reports that US crude inventories recorded declines last week may also lend some support on Wednesday.