Our favorite Brent crude oil shows a slight increase during the Asian session on Monday. Market participants are wary of the current situation, taking into account failed negotiations between the US and China, as well as other factors.
Brent contracts for July on the London Stock Exchange have risen 24 cents, reaching $ 70.86 per barrel. During last trade, they were growing at about the same pace and cost $ 70.62.
June futures for WTI crude are less lucky. They are slow moving down. According to the NIMEX quotes, WTI contracts are currently being traded at a price of $ 61.63.
The most important factor that could worsen the situation on the oil market is a current conflict between America and China. Negotiations were unsuccessful, and the United States has increased import duties on Chinese goods. China has already announced that it will respond. It is not yet clear what measures they are going to take.
On Sunday, President Trump’s advisor Larry Cudlow said that no meetings or discussions with the Chinese partners had been planned yet. The next talks between the leaders of the two countries can take place during the G-20 forum, which will be held in late June.
The price of “black gold” has got a little support after Baker Hughes released the data. The oil service company has reported that the number of drilling rigs operating in the United States has decreased by 2 units. Now the number of active drilling rings amounts to 805 units.
In addition, there were problems at the Norwegian Oseberg Field. The production here has been suspended since last Wednesday. The field produces about 6% of all Norwegian oil.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade