Oil prices slipped to $57.84 on Wednesday before retracing back to $58.34 on concerns that the Phase 1 trade deal between the United States and China, the world's biggest oil users, may not boost demand as the United States intends to keep tariffs on Chinese goods until a second phase.
U.S. Treasury Secretary Steven Mnuchin said late on Tuesday that tariffs on Chinese goods will remain in place until the completion of a second phase of a U.S.-China trade agreement, even as both sides are expected to sign an interim deal later on Wednesday.
Financial markets are disappointed that the Trump administration signalled tariffs will remain in place until after the 2020 U.S. Presidential election, depending on whether China comes through on their promises with the Phase 1 agreement.
Later on Wednesday the US Energy Information Administration (EIA) is due to publish official inventory data.
Where are commodity prices heading next? Watch Phil Carr at The Gold & Silver Club review Oil with the latest price forecast and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.