Saturday , August 15 2020

Oil, amid political tensions and rising US supplies

NEW YORK (AWP / AFP) – Oil prices ended in an unorganized way Wednesday, escalating amid lingering uncertainty over Sino-US trade talks, possible geopolitical tensions in the Middle East or Ecuador, and abundant reserves in the United States.

In London, Brent North Sea crude for December delivery rose 8 cents, or 0.1%, to $ 58.32.

In New York, the US WTI barrel for November, citing the United States, fell 4 cents, or 0.1%, to close at $ 52.59.

The women "temporarily benefited from a meeting of some enthusiasm about the possibility of a Sino-US trade agreement," said Mizuho's Robert Hager.

While negotiations must resume Thursday in Washington, the tone between the two countries has increased in recent days; The United States in particular has announced sanctions against Chinese entities and officials suspected of participating in "punishment" against Uighur Muslims in Xinjiang.

According to Bloomberg news agency, however, Beijing remains open to a partial deal if US President Donald Trump waives the additional tariffs he has threatened to impose by the end of the year.

What to soothe fears of a new escalation in trade sanctions is likely to slow a little more global growth, and thus energy demand.

Market players are also wary of the situation in the Middle East when Turkey launched its offensive against Kurdish forces in northeast Syria on Wednesday.

Women can also benefit "in part" from Ecuadorian news "where about a third of oil production is threatened by ongoing protests," said Karsten Fritsch, an analyst for Commerzbank.

However, the price per barrel fell shortly after the publication of a weekly report by the US Energy Information Agency (EIA).

According to the document, crude oil stocks rose for the fourth consecutive week in the United States as production rose to record levels.

At the height of the refinery maintenance season, refinery activity slowed down at the same time: they worked at 85.7% of their capacity, compared to nearly 95% a month ago. Their pace is thus falling to their lowest level since 2017.

"Investors are suddenly reminded that there is a lot of oil available in the country and demand is not necessarily there," said Hager.

Bur-jum / alb

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