Oil prices stabilized in weak relationships on Wednesday, after decreasing in the previous session due to the fears that the new US customs functions, which should be announced at 20:00 GMT, could deepen a global commercial war, which can limit the demand for crude oil.
The Futures on Brent’s crude oil increased by one year to $ 74.50 per barrel, at 03:46 GMT, after decreasing by 0.4 percent on Tuesday. Futures on the intermediate crude oil of the United States Western Texas have increased by 3 cents to $ 71.23, after decreasing by 0.4 percent. Prices settled at the highest levels in 5 weeks on Monday.
Tuesday the White House confirmed that President Donald Trump would have imported new customs duties on Wednesday, but that he had not provided any detail on the size and reach of these commercial obstacles.
Oil prices have increased by about 2 % in March, but have been stable since then; Where the markets are waiting for Trump’s plans for complete customs tasks before “Tahrir Day”.
Priyanka Sashdiva, head of the Philip Nova market analyst, said: “The weakness of commercial volumes in the oil market indicates that concerns for these commissions increase, despite some indicators of positive demand from continental China”.
At 03:53 GMT; The dimensions of Brent’s crude oil reached 8,550 contracts for the month of June, compared to 672617 contracts open to the same month, according to the data of the intercontinental stock exchange (ICE) on the London Stock Exchange platform.
For weeks, Trump promoted April 2 as a “day of liberation”, which would bring new customs duties to destabilize the global commercial system.
The White House is scheduled to issue its ad at 16:00 East (20:00 GMT).
“The declaration of (customs duties) can affect prices,” said IMC analysts in a note. On or down, although the balance of the risk tends to land, given that customs duties are more weak than expected, which is unlikely that leads to a significant increase in the price of Brent raw, while the strongest procedures can lead to large -scale sales.
These drops have satisfied Trump threats to impose secondary customs tasks on Russian oil and to strengthen the penalties at Iran on Monday, as part of the “Maximum pressure” campaign launched by his administration to reduce his exports.
“If the pressure of customs duties in favor of Trump and has allowed him to reach a ceased between Russia and Ukraine, there is a scenario in which these punitive procedures can be shortly
He continued: “So far, oil prices have been calm, waiting for an official reaction from the main important countries to the customs tasks just proposed”.
The American oil and fuel stocks showed a different image of supply and demand in the largest oil and consumer manufacturer in the world.
According to sources, citing the American Petroleum Institute, the US raw oil stocks increased by 6 million barrels per week ending on March 28th. On the other hand, the petrol stocks decreased by 1.6 million barrels and distillation products decreased by 11 thousand barrels, according to sources.
The official data of the US crude oil are scheduled to be released by the Department of Energy information later on Wednesday.
