Oil regains some poise, but demand concerns drag
|Oil prices on both sides of the Atlantic are reporting moderate gains, likely due to oversold Intraday technical indicators, although the fears that escalating trade disputes could dent demand are keeping the gains under check.
At press time, Brent crude is trading at $78.35 per barrel, having clocked a low of $77.87 yesterday. A barrel of WTI crude is changing hands at $68.85, having hit a low of $6.35 yesterday.
The Paris-based International Energy Agency (IEA) on Thursday warned that escalating trade dispute and EM currency slide pose a risk to growth. As a result, oil benchmarks fell sharply, neutralizing the immediate bullish outlook put forward by the bull flag breakout pattern earlier this week.
The minor gains seen in Asia is likely a dead cat bounce as growth concerns could keep buyers at bay. Further, fears that President Trump might tweet displeasure over rising oil prices could cap upside in prices.
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