Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures were on the defensive during the Asian trade session on Wednesday. Traders are digesting a surprise build in U.S. stockpiles.
However, losses are being capped by optimism that China and the United States are close to signing a preliminary trade accord that will end a better than 16 month long bitter trade dispute.
As of 1:45 am GMT, the international benchmark, Brent crude oil futures contract was down about twenty cents or 0.3 percent to trade at to $64.08 a barrel. The Brent contract, yesterday added nearly one percent.
West Texas Intermediate (WTI) crude futures, for front end delivery, also lost ground. This contract shed 17 cents to trade at $58.24 per barrel.
Today’s fall in oil prices reversed two days of gains seen in the WTI contract which added 1.1 percent. Brent was up 1.4 percent during this period as traders were monitoring positive headlines surrounding the trade war between the world’s two largest consumers of the black gold.
Crude Oil Traders Digest U.S. Inventory Data released Overnight
The American Petroleum Institute (API) released weekly inventory levels overnight. U.S. oil stockpiles added 3.6 million barrels last week that ended November 22.
This brings the U.S. inventory level to 449.6 million barrels. Analysts had expected a gain of only 448,000 barrels.
The U.S. Energy Information Administration (EIA) inventory data is due later today during the North American trade session.
Recent headlines are now indicating that the United States and China are close to agreement that will culminate in signing a “phase one” trade deal.
Overnight, President Donald Trump said that the two sides were close. This comes after top trade officials, from both countries spoke on the telephone and agreed to close the gap on key issues.
This trade dispute between the world’s two largest economies has dented global economic growth as well as consumer and business sentiment.
This trade war has also hampered business investment as consumer spending has slowed down and barrier of trade has made it hard to move capital.
