Oil prices fall with U.S.-China trade concerns
Price of oil of the Brent brand fell lower than 58 dollars for barrel for the first time since January 8 of this year. The price of October futures of North Sea oil mixture of the Brent brand fell by 3,07% - to 57,13 dollars for barrel. The cost of September futures for oil of the WTI brand decreases by 3,43%, to 51,79 dollars for barrel. According to experts, the latest fall was triggered by trade uncertainty between the largest economies in the world – American and Chinese. In these conditions, traders prefer trading assets rather than commodity ones. As a result, oil demand is declining. The forecast of the U.S. Department of Energy on the price of oil for 2019-2020, which was changed downward, has the impact on prices also. And here, decrease in the forecast of global economic growth is the main reason. At the same time, analysts call intensifying trade tensions between the U.S and China, which have had the biggest impact on prices, as the main threat to the stability of the global oil market. According to analysts, if China will keep importing Iranian oil despite of U.S. sanctions, it would bring down the oil market as then international oil prices could fall $15-20 a barrel.
