Oil decreases with the decline in demand expectations due to economic tensions
The prices of crude oil decreased on Tuesday, since the growth expectations of the demand by investors have decreased due to the continuation of the commercial war between the United States and China, the two major economies in the world.
The Futures on Brent’s crude oil decreased by 44 cents, equal to 0.7 percent, at $ 65.42 per barrel by 04:00 GMT. Futures on the intermediate crude of the western Texas of the United States decreased by 40 cents, equal to 0.6 percent, at $ 61.65 per barrel. Both two records had decreased more than one on Monday dollar.
“Markets are carefully monitoring the commercial negotiations between the United States and China, realizing that the deterioration of commercial relations between the two major economies of the world could push the global economy towards the recession,” said Priyanka Sashdiva, head of the market analyst of Philip Nova.
The lack of trust in the future demand and the absence of any concrete indicators of the recovery of demand in continental China will remain shadow on oil prices.
The effort of the President of the United States Donald Trump to remodel global trade to impose customs duties on all American imports to create a great danger for the global economy that slips this year, according to most economists in a reuters survey.
China, which was affected by the most serious of these designs, replied customs duties on American imports, which triggered a commercial war between the two largest countries that consume oil. This prompted analysts to abruptly reduce their expectations for oil and its prices.
On Monday, Barclays has reduced his expectations for the price of Brent’s crude oil for $ 4 2025, to reach $ 70 per barrel, indicating the escalation of commercial tensions and the Opec Plus production strategy as the main factors behind an oil supply surplus of one million barili per day this year.
In the meantime, the sources reported to Reuters last week that many members of the OPEC Plus, which include the organization of the countries exported by oil (Opec) and its allies, suggest accelerating the rhythm of production increases for the second consecutive month of June.
“It seems that a significant reduction in oil prices is possible if the exporting countries have strengthened their production,” said the oil of oil Philip Verlier in a note.
It is also likely that the US raw oil stocks increase by about 500,000 barrels per week ending on April 15, according to a preliminary survey conducted by Reuters for analysts on Monday.
The American Petroleum Institute, an industrial group, will publish its estimates of US oil stocks on Tuesday, with official data from the Energy Information Administration that will be issued on Wednesday.
