Published: Fri, August 09, 2019
Money | By Ethel Goodwin

Brent crude oil price: technical bias turns further negative after 20% drop

Brent crude oil price: technical bias turns further negative after 20% drop

Meanwhile, fresh concerns are emerging that oil price may continue its free fall as the escalating trade war between U.S and China deepens.

On Monday, the 5th of August 2019, both United States and UK crude futures' prices took a tumble of more than 3 percent, as global growth concerns had been trembling financial markets across the world and fueling up frets of a recessed global economy in a near-term outlook, despite USA policymaker's ballooning optimism over U.S. economy.

Worldwide benchmark Brent crude futures were at $58.70 a barrel by 0039 GMT, down 24 cents, or 0.41%, from their previous settlement and trading near seven-month lows. Prices have lost more than 20 percent since hitting their 2019 peak in April.

West Texas Intermediate (WTI) crude futures rose 7 cents, or 0.13 per cent, to $54.76 per barrel.

Brent crude prices have dipped nearly 10% during the past week after US President Donald Trump announced he would impose a new 10% tax on $300-billion worth of Chinese imports starting September 1, jolting world equity markets as a result.

Riyadh is continuing its efforts to reduce global oil inventories amid the U.S.

The details: An earlier report published by Nairametrics revealed that oil price dropped to below $60 a barrel in the early hours of Tuesday, as trade tension between the U.S and China intensified.

While OPEC always looms large in the oil market, trade wars are a significant consideration, too.

According to data released by the S&P Global Platts Survey, OPEC, world biggest oil cartel, pumped its fewest barrels of crude oil in over 5 years (Apr 2014 - 29.70mb/d). -China trade dispute worsened, spurring fears it would morph into a currency war. Still, U.S. stock indexes tumbled more. Fuel exports continued to climb as supply outstripped demand in the world's second-largest oil consumer. Weak demand in established markets is spurring the company to focus on emerging economies, he said.

Saudi Energy Minister Khalid al-Falih and U.S. Energy Secretary Rick Perry on Tuesday expressed mutual concern over threats targeting freedom of maritime traffic in the Gulf.

Prices for the black gold fell early on worries about the trade war between Washington and Beijing, then extended losses after USA government data showed a build of 2.4 million barrels in US stockpiles instead of the 2.8 million draw analysts had expected.

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