The international benchmark, the Brent crude futures contract, eased off its high price point for 2019 during today’s Asian trade session. Traders are cautions on global economic growth as that could hurt demand for oil.
Traders did note, however, that the recent supply cuts from OPEC and non-member nations led by Russia, were bolstering prices somewhat. Traders are also waiting on the ongoing trade talks between the United States and China. They are looking for details as both countries are citing that progress is being made.
As of 2:20 am, the international benchmark, Brent crude futures contract was down 42 cents from their last close or 0.6 percent to trade at $66.08 per barrel. This is near its 2019 high at $66.83. This high was reached yesterday.
U.S. West Texas Intermediate (WTI) crude futures were trading at $55.71 per barrel. This is a gain of 12 cents from their last close. This contract is now below its 2019 high of $56.33 per barrel. This was also reached yesterday.
Crude Oil Traders wait on Trade Headlines between the US and China
Both the United States are still meeting trying to hammer out a new trade deal before the March 1 deadline. Both sides will now meet in Washington DC this week. China’s vice premier who is also the chief trade negotiator, Liu He, is meeting with U.S. Trade Representative Robert Lighthizer in Washington. They are citing progress but no details as talks drag on.
On another note, oil traders this morning, said that the small correction lower was due, in part to worries over global economic growth and a not so bright forecast in 2019.