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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.