Oil prices fall more than one percent ahead of G20, OPEC meeting

By Stephanie Kelly NEW YORK (Reuters) - Oil prices fell more than 1 percent on Tuesday, in conjunction with sagging stock markets after U.S. President Donald Trump threatened more tariffs on Chinese imports ahead of the coming G20 summit.

Reuters November 28, 2018 01:05:20 IST
Oil prices fall more than one percent ahead of G20, OPEC meeting

Oil prices fall more than one percent ahead of G20 OPEC meeting

By Stephanie Kelly

NEW YORK (Reuters) - Oil prices fell more than 1 percent on Tuesday, in conjunction with sagging stock markets after U.S. President Donald Trump threatened more tariffs on Chinese imports ahead of the coming G20 summit.

Brent crude futures fell $1.00 to $59.48 a barrel, a 1.7 percent loss, 12:53 p.m. EST (1753 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 84 cents to $50.79 a barrel, a 1.6 percent loss.

Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.

U.S. stock markets declined after President Donald Trump's threat to move ahead with additional tariffs on Chinese goods dampened hopes of resolving the trade fight at the upcoming G20 Summit. Earlier reports said Trump was also considering tariffs on most imported automobiles as well.

Both crude benchmarks are down more than 30 percent since early October, depressed by an emerging supply overhang and widespread financial market weakness.

"Oil prices have come under pressure in tandem with weakness in equities," said Abhishek Kumar, senior energy analyst at Interfax Energy in London. "The Brent crude front-month futures price falling below the $60 a barrel key technical support level has further exacerbated selling in the oil complex."

GRAPHIC: Russian, U.S. & Saudi crude oil production (https://tmsnrt.rs/2CTwqaq)

GRAPHIC: Brent crude oil price slumps of 2008, 2014/2015 & 2018 in percent (https://tmsnrt.rs/2RiWkJ1)

Leaders of the Group of 20 nations (G20), the world's biggest economies, will meet on Nov. 30 and Dec. 1, with the trade war between Washington and Beijing atop the agenda.

The top three crude producers, Russia, the United States and Saudi Arabia, will all be at the summit, raising expectations that oil policy will be discussed.

The Organisation of the Petroleum Exporting Countries will meet on Dec. 6 in Vienna to discuss output policy with some non-OPEC producers, including Russia.

Saudi Arabia raised oil production to a record high in November, an industry source said on Monday, pumping 11.1 million to 11.3 million barrels per day (bpd).

But the kingdom has been pushing for a collective production cut and is discussing a proposal to curb output by OPEC and its allies as much as 1.4 million bpd, sources close to the discussions told Reuters this month.

Trump has pressured Saudi Arabia, OPEC's de-facto leader, not to cut production.

"We feel that the Saudis will attempt to try to tread a fine line between placating Trump and driving some production decisions capable of halting the dramatic price plunge of the past couple of months," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

U.S. crude production also hit a record high this month of 11.7 million bpd, with stockpiles rising for nine straight weeks.

Weekly industry data on U.S. crude inventories is set to be released at 4:30 p.m. EST on Tuesday, with analysts expecting stockpiles to have risen 800,000 barrels in the week ended Nov. 23. [EIA/S]

(Reporting by Stephanie Kelly in New York, Chistopher Johnson in London, Henning Gloystein in Singapore; Editing by Marguerita Choy and David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.