Oil prices fall almost 2% on trade talks uncertainty
By Collin Eaton HOUSTON (Reuters) - Oil prices fell almost 2% on Monday, erasing last week's gains and tumbling alongside U.S. stocks on uncertainty over a trade deal between the United States and China.
By Collin Eaton
HOUSTON (Reuters) - Oil prices fell almost 2% on Monday, erasing last week's gains and tumbling alongside U.S. stocks on uncertainty over a trade deal between the United States and China.
Brent crude futures
Wall Street's three main stock indexes also fell from last week's record highs following a report that stoked concerns a U.S.-China trade deal might not get through, which pushed oil prices lower, analysts said.
"Crude has become highly reactive to whichever way the wind is blowing in the (U.S.-China) trade talks. When it falters, prices get punished," said John Kilduff, a partner at Again Capital LLC in New York. "This headwind of slack demand growth keeps holding us back."
The 16-month trade war between the world's two biggest economies has slowed global growth, prompting analysts to lower forecasts for oil demand growth and raising concerns that a supply glut could develop in 2020.
China and the United States had "constructive talks" on trade in a high-level call on Saturday, state media Xinhua reported on Sunday, but it gave few other details.
On Monday, CNBC quoted a Chinese government source saying the mood in Beijing about a trade deal was pessimistic due to U.S. President Donald Trump’s reluctance to roll back on tariffs.
"The souring trade situation has put a halt to the rally," said Robert Yawger, director of energy futures at Mizuho in New York, adding crude prices had risen earlier in the session but faded when New York markets opened.
Expectations of lower seasonal demand for gasoline in the United States also weighed on oil prices, said Andy Lipow, president of Lipow Oil Associates in Houston.
Concerns about plentiful crude supplies in 2020 weighed on the market, which expects OPEC to extend production cuts in early December to help avoid a new global glut.
The Organization of the Petroleum Exporting Countries (OPEC) said last week it expected demand for its oil to fall in 2020, supporting a view that there is a case for the group and other producers like Russia - collectively known as OPEC+ - to maintain limits on production.
OPEC+ is due to discuss output policy at a meeting on Dec. 5-6 in Vienna. Their existing production deal runs until March.
(Additional reporting by Roslan Khasawneh and Dmitry Zhdannikov; Editing by Marguerita Choy and Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.
FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.
KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate