Oil steadies after falling on Trump comments on U.S.-China trade

By Stephanie Kelly NEW YORK (Reuters) - Oil prices pared losses on Friday, after earlier falling more than 1% following comments from U.S. President Donald Trump that he has not agreed to roll back tariffs on China. Brent crude futures rose 3 cents to $62.32 a barrel by 1:23 p.m.

Reuters November 09, 2019 01:08:07 IST
Oil steadies after falling on Trump comments on U.S.-China trade

Oil steadies after falling on Trump comments on USChina trade

By Stephanie Kelly

NEW YORK (Reuters) - Oil prices pared losses on Friday, after earlier falling more than 1% following comments from U.S. President Donald Trump that he has not agreed to roll back tariffs on China.

Brent crude futures rose 3 cents to $62.32 a barrel by 1:23 p.m. EST (1823 GMT). West Texas Intermediate (WTI) crude fell 7 cents to $57.08 a barrel.

Brent was headed for a weekly rise of 0.9%, while WTI was on track to gain 1.4%.

Prices pared losses in midday trade, after Brent reached a session low of $60.66 a barrel and WTI sank to $55.76 a barrel.

"Given the volatility around the U.S.-China trade saga, it's hard to be short over the weekend," said John Kilduff, a partner at Again Capital LLC. "The turn of a phrase could restore the very hopes that were dashed just last night over a deal being struck."

The 16-month trade war between the world's two biggest economies has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020.

Oil prices fell earlier on Friday after Trump told reporters he has not agreed to roll back tariffs on China but that Beijing would like him to do so.

The comments come after officials from both countries on Thursday said China and the United States have agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed.

Yet Reuters reported on Thursday the plan faced stiff internal opposition in the U.S. administration. U.S. officials have signaled opposing views on the status of talks.

Oil prices have also been under pressure since OPEC Secretary-General Mohammad Barkindo said this week that he was more optimistic about the outlook for 2020, appearing to downplay any need to cut output more deeply.

A deal between the Organization of the Petroleum Exporting Countries and allies, such as Russia, will limit supplies until March next year. The producers meet on Dec. 5-6 in Vienna to review that policy.

"Even if a partial (U.S.-China) agreement is reached, the impetus for demand will not be enough to avoid an oversupply next year, meaning that OPEC will still need to make bigger production cuts," Commerzbank said in a note.

While customs data showed that China's crude oil imports in October rose 11.5% from a year earlier to a record high, bearish signals elsewhere tempered the news.

U.S. crude oil stockpiles rose sharply last week as refineries cut output and exports dropped, the Energy Information Administration said on Wednesday. [EIA/S]

Meanwhile, U.S. energy firms this week reduced the number of oil rigs operating for a third week in a row. Drillers cut seven rigs in the week to Nov. 8, bringing the total count down to 684, the lowest since April 2017, General Electric Co's Baker Hughes energy services firm said.

For a graphic on U.S. petroleum inventories:

https://fingfx.thomsonreuters.com/gfx/editorcharts/US-OIL-STOCKS/0H001PBQX5Y0/eikon.png

(Additional reporting by Shadia Nasralla in London and Aaron Sheldrick in Tokyo; Editing by Marguerita Choy and Dale Hudson)

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

Updated Date:

TAGS:

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.

also read

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry
World

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry

ANKARA (Reuters) - Turkey's daily death toll from the coronavirus hit a record high of 141 on Friday, according to data from the Health Ministry, as the country braced for nationwide measures amid a surge in cases in recent weeks. The data showed 5,103 new COVID-19 patients were recorded in the country, while the overall death toll rose to 12,084. Since July, Ankara has only reported symptomatic COVID-19 patients, a move critics say hides the true scale of the outbreak.

Gunman releases all hostages in Georgian capital Tbilisi - police
World

Gunman releases all hostages in Georgian capital Tbilisi - police

TBILISI (Reuters) - A gunman has released unharmed all nine hostages he had taken at a microfinance organisation in the Georgian capital Tbilisi on Friday, police said. According to preliminary information, the gunman was not demanding a ransom but had some social demands, including lower prices for medicines

With applause and flowers, thousands attend funeral of Belarusian protester
World

With applause and flowers, thousands attend funeral of Belarusian protester

By Matthias Williams KYIV (Reuters) - Thousands of people silently raised their arms in the air, held flowers aloft and broke into chants outside a church in Minsk on Friday at the funeral of a Belarusian protester. The death of 31-year-old Roman Bondarenko has become a flashpoint in months-long mass protests against President Alexander Lukashenko. Witnesses said Bondarenko was detained after a scuffle with people in plain clothes who came to a playground to remove red-and-white ribbons representing the protest movement