Oil prices tumbled as trade tensions hurt demand forecasts

Tuesday, August 06, 2019
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Oil prices are also under pressure due to signs of increased US oil exports (AP)

London: Middle East

Oil prices fell on Monday, as US President Donald Trump pledged to step up a trade war with China by imposing more tariffs on Beijing, which would likely curb the fuel demand of larger oil companies. consumers of crude in the world.
At 17:00 GMT, Brent crude fell $ 1.3, or 2%, to $ 60.60 per barrel. The US WTI fell 39 cents, or 0.7%, to $ 55.27 a barrel.
Brent and WTI fell last week. Brent lost 2.5% and US crude 1%.
Asian stocks fell to their lowest level in six months on Monday, as gold prices rose as investors sought to acquire safe haven badets, due to escalating trade disputes between China and the United States, the world's two largest economies.
Last week, Trump announced that it would impose a 10% charge on Chinese imports, worth $ 300 billion as of September 1, and that it could raise tariffs if Chinese President Xi Jinping did not act more quickly towards a trade agreement. Yesterday, China let the yuan fall below the seven-dollar mark for the first time in more than a decade, indicating that China could let the currency fall further due to the trade dispute.
The depreciation of the yuan would increase the cost of China's oil imports in US dollars. Beijing is the largest importer of oil in the world.
Prices are also under pressure because of signs of increased US oil exports. US Census Bureau data released on Friday showed that US oil exports rose 260,000 bpd in June to a record monthly level of 3.16 million bpd.
These pressures are exerting on oil prices, while OPEC confirms its commitment to a production reduction agreement, which keeps prices above $ 60 up to $ 60. ;now.
The Russian Minister of Energy said Saturday that Russian oil production in July was in line with the OPEC agreement, adding that Moscow planned to abide by the agreements in August.
Russian production in July fell 290,000 b / d compared to October 2018, the reference date of the supply reduction agreement between OPEC and OPEC, the ministry said.
A Reuters survey showed that OPEC's crude oil output dropped in July to its lowest level in eight years, while Saudi Arabia, the world's largest exporter of crude oil, made up for more. plus voluntary reductions, offsetting the losses resulting from US sanctions imposed on Iran and interruptions in other countries. From the organization.
According to the survey, the 14-member OPEC pumped 29.42 million barrels per day (b / d) this month, down 280,000 b / d from the production level revised in June, its lowest level since 2011.
The survey indicates that Saudi Arabia is sticking to its plan to voluntarily reduce production beyond the target level in an agreement concluded by OPEC to support the market. OPEC, Russia and other producers, OPEC +, agreed in December to cut production by 1.2 million barrels per day from 1 January this year. OPEC's share of the reduction is 800,000 barrels per day, applied by 11 member states of the Organization, excluding Iran, Libya and Venezuela .
In July, countries that pledged to cut the deal, which was extended until March 2020, achieved 163 percent of the cuts planned, the survey revealed. The three countries also pumped less crude.

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