Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures were on the defensive during the Asian trade session on Tuesday as traders wait on trade talks or some clarity.
Traders are waiting on news surrounding ongoing trade talks between the United States and China as doubts are seeping in as to when the preliminary trade deal will be signed.
The United States has supported protestors in Hong Kong. This could force China to reiterate their stance for two countries one policy stance.
Oil traders are also monitoring new that Saudi Arabia has increased output. This brings oversupply back into focus.
As of 3 am GMT, the U.S. West Texas Intermediate (WTI) crude futures contract, for front month delivery, fell 18 cents to trade at $56.58 per barrel. Yesterday, this contract shed 0.7 percent.
The international benchmark Brent crude oil futures contract lost 14 cents to trade below $62.05 per barrel. This contract, on Monday, was down half a percent.
Crude Oil Traders Monitor Trade Commentary and OPEC Production
Traders are monitoring the 16 month long trade war between China and the United States closely as it has weighed heavily on global economic growth and roiled the financial markets. There are rising concerns as to when and if the preliminary trade deal will actually be signed.
Over the weekend, President Donald Trump said that trade talks with China were moving along very nicely.” Trump said that the United States would only sign a trade agreement that was good for the U.S. He said that the United States had no plans to lift tariffs at this time.
Looking at the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia, just raised their oil output by 10.3 million barrels per day. Their output is still below its OPEC target.
OPEC and its non-member allies called OPEC +, are expected to extend supply cuts until at least March 2020. This is according to the energy minister in Oman.
