- Crude oil started the week under pressure following last week's rally.
- Saudi energy minister acknowledged that the oil market is not stable.
- Investors continue to asses the United States (US)-China trade deal.
Crude oil prices finished the previous week on a strong note boosted by the heightened expectations of the United States (US) and China reaching a partial trade deal. The barrel of West Texas Intermediate (WTI) added more than 4% in the last two days of the week but struggled to build on these gains on Monday.
Will global energy demand recover?
The lack of clarity on the first phase of the trade deal and its potential impact on the global oil demand outlook caused investors to take their profits off the table.
Commenting on the latest developments surrounding the trade dispute, "China committed to doubling its annual purchase of American agricultural products to as much as $50bn. The United States (US), in turn, held back from implementing tariff increases scheduled for this week. But there are still plenty of clouds on the horizon,” said Royal Bank of Scotland analysts. “All the existing tariffs remain in place and the threat of escalation remains (tariffs increases due on the 15 December would hit consumer goods) and the core issues of national security and technology transfer have yet to be thrashed out. Long way to go in this saga.”
Meanwhile, Saudi Arabia's energy minister on Monday said the oil market was not stable yet and added that there was still volatility. Although the minister said that they will extend their voluntary output cuts at approximately 400,000 barrels per day, crude oil struggled to stage a meaningful recovery. As of writing, the barrel of WTI was trading at $53.50, erasing 2.35% on a daily basis.
Technical levels to watch for
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.