Economy

Oil falls as South Korea growth revision highlights trade war impact

Oil falls as South Korea growth revision highlights trade war impact”

The U.S. -China trade dispute has also affected South Korea's economy. Trump tweeted that China will have a much tougher time securing a trade deal if the Asian nation waits until after the 2020 US presidential election and he wins.

UNITED STATE crude was down 65 cents, or 1.19%, at $54.45 a barrel by 0857 GMT, while Brent was down 47 cents at $58.19 a barrel. It fell to a session low of $52.84 a barrel, the lowest since August 9. It sank as low as $57.23 a barrel, also the weakest since August 9.

Oil prices got a boost on Wednesday, climbing more than 3% with the help of strong economic data coming out of China's services sector.

There is some relief on the data front as a private survey showed earlier today that activity in China's services sector expanded at the fastest pace in three months in August.

Meanwhile, addressing to a growing possibility of further downswing ahead of crude oil futures' prices given the extent of a tempestuous demand outlook, a partner at Again Capital in New York, John Kilduff said, "That deterioration is continuing to undermine the demand growth outlook for oil".

Brent is now about 23% lower than its peak for this year in April.

U.S. President Donald Trump told reporters over the weekend that trade talks between both sides would resume in Washington this month.

Oil advanced alongside USA stocks as political tensions appeared to subside in Hong Kong and the United Kingdom, while indicators in China and Europe hinted global economic growth may not be as bad as some expected.

Washington began imposing 15 per cent tariffs on an array of Chinese imports on Sunday, while China began placing new duties on US crude oil. -China dispute, central bank data showed on Tuesday.

Oil rose as a forecast decline in USA crude inventories countered pessimism driven by a surprise contraction in American manufacturing and a warning to China from President Donald Trump.

Higher supplies from Iraq and Nigeria outweighed restraint by Saudi Arabia and losses caused by USA sanctions on Iran. The increase marked a first since OPEC agreed with Russian Federation and other non-members countries, a group known as OPEC+, in December to reduce supply by 1.2 million barrels per day (bpd) from January 1 this year.

Data due this week on U.S. oil inventory levels will be delayed by a day to Wednesday and Thursday because of the U.S. Labor Day holiday on Monday.

Oil prices are likely to remain rangebound for the "foreseeable future" and there will be little spending growth in North American oil and gas fields in the near to medium term, Lorenzo Simonelli, chief executive of General Electric Co's Baker Hughes said.



Like this

loading...
loading...

Latest


06 September 2019
There are now more iPhone hacks than ever, says report
Vice's broker sources state that the number of available iPhone hacks on the market is more than they've ever seen in the past. One of the reasons why Android vulnerabilities are becoming pricier than similar iOS ones is how fragmented the ecosystem is.

06 September 2019
Uncapped spinner Linde replaces Smuts in SA's T20I squad for India series
Cape Town - At least two things were curious about the media release from Cricket South Africa issued earlier on Thursday. Faf du Plessis has been named as the captain of the Test side, while batsman Temba Bavuma will serve as his deputy.

06 September 2019
Preston Smith's fourth-down sack seals Packers' win over Bears
Roy Robertson-Harris was also extremely disruptive in the first half. "It seemed like they were all over the place", LaFleur said. This slow start does make sense when you consider the starters for both sides were largely limited throughout the preseason.

06 September 2019
Love Island's Greg & Amber Will Be On This Week's Late Late Show
The move is a surprising U-turn, with Dancing On Ice bosses reportedly said to be "delighted" by Amber's acquisition. The Longford model became a household name with her no-nonsense personality and frankly hilariously honest advice.

06 September 2019
"Lenovo debuts 7" Google Assistant Smart Display and Android Smart Tabs
"The 8" 1200 x 800 IPS display cranks out 350 nits while dual side-firing speakers with Dolby Atmos provide the audio experience. Three digital mic arrays and 360-degree far-field voice recognition can then pick up on your voice from across the room.

06 September 2019
Virat Kohli Reveals Why His Wedding With Anushka Sharma Was All HUSH-HUSH!
I thought I was being amusing (when I cracked that joke), and I said something which wasn't probably the right thing to say. He chuckled as he remembered going jittery and cracking a joke in front of Anushka as he was speechless on seeing her.

06 September 2019
External benchmark for floating rate loans from October 1
The norms for external benchmark linking of interest rates was scheduled to be operational from April 1, but was deferred. The fall may be just 20 bps or 10 bps, depending on the strength of the bank's deposits franchise.

06 September 2019
US, China to resume trade talks in Washington in October
A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of United States economic activity. Trade teams from the two countries will hold talks in mid-September before the high-level talks next month, the ministry said.

06 September 2019
Nicki Minaj announces retirement to start family
The artist shared the lyrics along with a photo of her and Petty posted just prior to the song's release . As you would expect, fans are extremely upset at the news, but they are understanding of her explanation.

06 September 2019
Tom Holland has FINALLY spoken about his girlfriend Olivia Bolton
The current Spider-Man animated series on Disney XD also has Peter mentoring Miles, with both of them attending Horizon High. Of course, Spider-Man fans' worlds were rocked when it was announced that Sony and Marvel were splitting over Spider-Man .