Crude declined as U.S.-China trade deal optimism vanishes

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Oil fell the most in two weeks, fearing recent trade talks would not lead to trade.

New York futures fell 2{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} on Monday. Last week Washington and Beijing entered into trade negotiations between the two countries. But China said it would like to hold additional talks this month to ruin the details of the "Phase 1" agreement promoted by US President Donald Trump this month.

Michael Lynch, President of Strategic Energy and Economics Research in Winchester, Massachusetts, said, “We have been strong in the dialogue that trade talks between the US and China will not come.

Despite threats to oil supply in recent months, including attacks on Saudi oil facilities, investors are focusing on uncertainty about trade negotiations and weakness in global demand outlook.


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The November delivery WTI fell $ 1.11 to settle at $ 53.59 a barrel on the New York Mercantile Exchange. Last week the price rose 3.6{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5}.

Brent crude oil for a compromise in December closed $ 1.16 to end the session at $ 59.35 a barrel on the ICE Futures European Exchange. The global benchmark traded at a premium of $ 5.70 per barrel to WTI that same month.

China also wants to scrap its planned tariff hike in December, according to someone familiar with the issue, with Trump's planned hike this week, as well as plans that the government has yet to approve.

Thomas Finlon, head of energy analysis group in Wellington, Florida, said, “China is negotiating some conditions and the reason for the price hike on Friday is not worth it now.”

-Support from James Thornhill, Elizabeth Low and Grant Smith

© 2019 Bloomberg L.P.

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