Crude surrenders gains as trade talks loom, demand woes deepen

Jacquelyn Melinek and Sheela Tobben, Bloomberg

Publishing

Monday, October 7, 2019 2:59 PM: CDT

Oil has been the biggest beneficiary for more than two weeks due to conflicting signs of economic growth, energy demand and geopolitical stability.

In New York on Monday, gifts rarely changed. At some point in the session, crude oil rose $ 1.25 per barrel, giving explorers the opportunity to price for future production through hedges.

A few days before trade negotiations between the world's two largest economies, Chinese officials were reluctant to address some of President Donald Trump's main themes. Meanwhile, if Ankara takes "unbound" measures in neighboring Syria, Trump threatened to "destroy and destroy" the Turkish economy.

Bill O & # 39; Grady, senior market strategist at St. Louis-based Confluence Investment Management LLC, said, "The market is weak on concerns that the economy will weaken." "This became the dominant story."

EARLIER: Oil head lowers for 2 months as a depleted demand signal surges

Michael Loewen, director of product strategy at Scotia Bank, reported that oil prices were under pressure after reporting that Saudi Arabia recovered oil production less than three weeks after an aerial attack.

For November delivery, West Texas Intermediate fell 6 cents to close at $ 52.75 a barrel on the New York Mercantile Exchange.

Brent Yu for a compromise in December fell 2 cents to $ 58.35 on the London-based ICE futures exchange. Global benchmark crude oil was traded at a premium of $ 5.64 to WTI the same month.

"I think the upcoming trade negotiations are adding positive momentum," said Ashley Petersen, senior oil market analyst at Houston Stratas Advisors.

With the help of Alex Longley and Catherine Ngai.

© 2019 Bloomberg L.P.