Investing.com – oil prices were mixed on Tuesday, as the trade war between the United States and China will impact the demand and that the prospects are worrying.
Futures contracts on the index of global benchmark Brent crude were to 68,83$ / barrel at 15: 30 after it passed the$ 70 and earlier.
The futures on the West Texas Intermediate (WTI) US rose by 1.43%, or 84 cents, to settle at 59,48 per barrel, the reopening of us markets after a long weekend of holiday.
Investors, however, fear that the trade war between the United States and China hit the global economy and reduces the fuel consumption.
“The price of oil, lack of direction, because the oil market is currently caught between the risks related to the offer, and concerns about demand,” said Commerzbank in a note.
“A series of weak economic data on the main economic areas of the United States, China and Europe, as well as the situation that is rooted in the trade negotiations, are not good news for the prospects of the application. “
The other hand, the crude has benefited from reductions in supply from the Organization of Petroleum Exporting Countries (OPEC) and its allies since the beginning of the year, political tensions in the Middle East also having an influence upward.
No political solution seems to close to put an end to us sanctions that have largely eliminated the iranian crude and venezuelan markets.
“Brent is expected to resume its upward trend in accordance to its fundamentals, which are tight,” said Harry Tchilinguirian, strategist global oil sector, at BNP Paribas in London.
OPEC and its allies, including Russia, will be meeting from 25 to 26 June to discuss production policy, but it remains to be determined if their pact of production will be prolonged. “Arabia and its allies in the Gulf will be subjected to intense pressure to increase their stocks,” said Abhishek Kumar, head of analysis at Interfax Energy in London.
“It also questions the unity of the OPEC+ while Russia’s is growing concern of losing its market share of oil exports to the United States “.