President Trump has frightened the oil market when speaking about new sanctions on Chinese products. His intension has made oil prices fall. Despite the information about irregular oil supply, the situation hasn’t improved yet. It should be noted that seizure of another vessel, which sailed through the Strait of Hormuz, has caused the delay in oil shipment.
It was 8 a.m. on Monday when Brent contracts for October lost 70 cents and cost $ 61.2on the London Stock Exchange. We recall that on Friday, they were trading very successfully. Thus, October contracts went up $ 1.4 and closed the session at $ 61.9.
On NYMEX, futures of the American benchmark WTI for September have lost 60 cents and are currently trading at around $ 55 per barrel. On Friday, the price increased $ 1.7 and closed the session at around $ 55.6.
Last week, Brent lost 2.5%, WTI – 1%.
Trump said that if the negotiations with the PRC failed, America would impose duties on the remaining exports. The trade conflict continues to gain momentum and will remain in the near future the main factor, which affect the market.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group