Oil prices dip despite latest U.S.-China trade talks

Andrew Cummings
October 12, 2019

Brent crude settled at $58.32 a barrel, up 8 cents, while U.S. West Texas Intermediate crude settled at $52.59 a barrel, down 4 cents. -China trade war continued to cloud prospects for the global economy and fuel demand despite a resumption in talks seeking a resolution to the 15-month conflict.

Oil prices rose on Wednesday following media reports that China was open to a partial trade deal with the United States, while inventories were found to be on the rise.

Tensions between the two sides rose this week as the United States imposed visa restrictions on Chinese officials and placed some major Chinese companies on a blacklist. -China trade dispute have overshadowed lower supply. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.

Turkey launched a military operation against Kurdish fighters in northeast Syria, President Tayyip Erdogan said, adding the offensive was aimed to eliminate a "terror corridor" along the Turkish border.

Analysts say the attacks could impact the economy of the oil-producing Kurdistan region in Iraq, and energy prices.

Oil prices have failed to gain a lasting boost from supply disruptions this year, including the attack last month on Saudi Arabian oil installations that briefly shut down more than half of production in the world's top exporter.

Smoke is seen following a fire at Aramco facility in the eastern city of Abqaiq, Saudi Arabia September 14, 2019.

Commerzbank analyst Carsten Fritsch said if the U.S.

Prices rose after setting aside the concerns about the demand for supply, and amid investors' anticipation for the outcome of US-China trade talks this week.

"Barkindo's comment reminds markets that if oil prices do not fall off a cliff over demand concerns, we could very see OPEC+ extend their production cuts throughout the majority of 2020", said Edward Moya, senior market analyst at OANDA in NY.

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