The world market of oil in expectation of trading negotiations of the USA and China

The world market of oil in expectation of trading negotiations of the USA and China

Oil in global sales areas is bargained differently against expectation of trading negotiations of the USA and China which will begin on Thursday after several months of break.

If on Monday and morning of Tuesday the cost of oil of reference grades showed a growth and reached $58,71 per barrel of Brent and $53,09 per barrel of WTI, then by the evening of Tuesday it began to decrease. Thus, Brent fell as much as $57, 84 per barrel, and WTI to $52, 14 per barrel.

As experts mark, the attention of participants of the oil market is still concentrated on trading negotiations of the USA and China which will be renewed on October 10, 2019 after a break lasting for several months.

During meetings in Beijing with representatives of the USA the Chinese party let know that it intends to narrow essentially the range of topics for discussion during trading negotiations in the USA. In particular, representatives of the Celestial Empire stated that they do not intend at negotiations in Washington to discuss themes of reforming of industrial policy and state grants. Thus, Americans insist on the decision of these two key issues.

Besides it, by the weekend the publication of updated forecasts of the oil market is expected from the OPEC and the International Power Agency.

As a whole, participants of the market show care after the publication of some weak statistical data which can negatively affect prospects of demand for oil in 2020.

At the same time, the head of Ministry of Power Energy of the Russian Federation Alexander Novak in the interview for “Russia-24” told that now the market is balanced, and the Russian side does not see crisis in the oil market as the price for oil «is more or less stable, volatility is low enough». Thus, he underlined that there are certain risks during the winter period and the situation will be monitored.

Nury Amanov