US crude production, Trade weigh on oil prices
|Resisting the steady increase in US oil inventories over the past two weeks, oil prices are losing momentum, as headlines about the year-long trade dispute between the United States and China has prompted investors to divest themselves of risky investments. Oil prices have turned down from 6-months high, with Brent crude trading below 70 (-1.75%), West Texas Intermediate at 60.80 (-1.80%) and finally Shanghai futures at CNY 471 (-2.80%). Yet it seems that despite recent tweet from US president Donald Trump about potential tariffs hike, the situation has not changed. OPEC output cut is still in place while major supply shortages related to Iran, Venezuela, Nigeria or Libya are still in place. It is therefore to consider that positive headlines concerning US – China trade talks should again benefit oil prices.
US EIA crude oil inventories for the week ended 26 April have been pointing to a rise of 9.93 million, its highest level since November 2018 while total production reached a record of 12.3 million bpd.
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Currently trading at 60.80, WTI is heading along 61.50 as buying pressures are emerging.
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