The energy market has started the trading session rather unsuccessfully. The next round of the trade war between the States and China caused the price fall. Because of this investors doubt that the demand could recover.
So, at 8.15 Moscow time, contracts for the European Brent crude oil fell by 0.44% and were trading at around 36.01 US dollars per barrel. Yesterday, the asset grew by 0.64%.
Futures for American WTI crude oil have fallen too. At the same time, the decline amounted to 0.55%; the asset was estimated by the market at $ 34.16. Yesterday, WTI showed very substantial growth – 3.31% or $ 1.1.
We recall that a decrease in demand caused the catastrophic drawdown of the oil market. Recovery of demand is the only condition for the price growth in the energy market.
The news about the gradual return to life of key economies has had a positive impact on oil quotes. No sooner had the market recovered from the losses, as it was pulled down by the news of official Washington about new possible sanctions against China.
This time the situation in Hong Kong became another bone of contention. A week ago, China announced the release of a bill that would restore order in the enclave, which triggered a violent reaction from the States.
Материал подготовлен с участием Кати Вилсон,
ведущего аналитика брокерской компании UFT Group