The statement of Trump on a transaction with China accelerated the growth of the world price for oil

The statement of Trump on a transaction with China accelerated the growth of the world price for oil

Donald Trump’s statement on Twitter that the USA and the People’s Republic of China have co-ordinated the first phase of commercial transaction, led to a confident growth of the world prices for oil. On this background the cost of oil of reference marks reached the maximum marks for the past three months.

The cost of February contracts on oil of European grade Brent at the London stock exchange ICE Futures exceeded $65 for a barrel that by $1 (1,56 %) above the price for closing of the previous session. This bar was overcome by Brent for the first time since September 23, this year. And the January contract on oil WTI at the electronic auctions of the New York Mercantile Exchange (NYMEX) for the first time since September 17 exceeded $60 for a barrel.

What was on Twitter that the American president wrote to accelerate the growth of the world prices for “oil”?

Trump stated on Friday that he will not enter additional duties planned for December 15 on the goods from the People’s Republic of China as the parties have co-ordinated the first phase of commercial transaction.

«Penal duties which have been planned for December 15, will not be entered, as we have achieved the transaction coordination», – he has written on Twitter.

As informs the Wall Street Journal referring to informed sources, the American side has suggested Beijing to lower twice operating duties on the goods of the Chinese export in total amount about $360 billion a year.

Earlier, the agency Bloomberg, referring to the Chinese ministry of commerce, has informed that Beijing and Washington have co-ordinated the text of the first phase of the bilateral commercial transaction, providing a stage-by-stage cancellation of the American duties on the Chinese goods. The reached arrangements provide increase in the American import to the Heavenly Empire.

According to a number of experts, the price for oil testifies to the demand for it in the world and positively characterises the world economic situation. Besides, the rise in prices for oil was promoted by the coordination the OPEC countries + new quotas on oil recovery reduction on the first quarter of the next year.

At the same time, some experts express fear that, at least, in the first half of the year 2020, in the oil market essential surplus of offers and appreciable increase in stocks of oil will be observed.

Nury Amanov