During the Asian session, oil prices are gradually falling. It is already the second week when the data from the API shows the reduction of inventories, but this does not help the benchmark crudes.
Investors are now worried about the trade negotiations between China and the States. Their status and progress are currently unclear.
Brent futures for May have lost 7 cents. Now they cost $ 67.54 per barrel. WTI contracts for April have dropped to $ 58.87. Today is the last day when WTI futures for April are being traded. However, the May contracts have shown a slight decline to the value of $ 59.12.
The agency Bloomberg reports that China does not want to accept a whole range of American conditions. Also, there was the news that the next week the trade representative and the US Treasury Secretary would go to Beijing. Perhaps they will be able to break free from deadlock.
Analysts say that due to the difficulties in the American-Chinese dialogue, the mood in the market has deteriorated. The dollar began to grow; at present oil is not as popular as it was.
Experts were waiting for the increase in oil reserves by more than 300 thousand. But they were wrong. API data indicate a reduction in trade stocks by 2.1 million barrels. Petroleum Institute also noted that since the beginning of the year, oil reserves had decreased by 1.5 million barrels.
Also, the forecast to reduce gasoline stocks has not come true. Instead of the expected 2.12 million, reserves have fallen by 2.8 million. Distillate stocks have fallen by 1.6 million barrels.
Now traders are waiting for the data from the US Department of Energy. The information will be made public tonight. Analysts expect an increase in oil reserves by 1 million.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade