Trade Tensions Weigh on Crude Prices

WTI Crude Oil

The direction of the crude oil market on Wednesday will be determined by the U.S. Energy Information Administration's inventories report. That wiped out earlier support for prices as Organization of Petroleum Exporting Countries output dropped to the lowest in a year in March. West Texas Intermediate crude for May delivery traded at $63.57 a barrel in electronic trade, up from its settlement of $63.51.

But BNP's Mr. Tchilinguirian said the oil market may likely "look past" any inventory data until the implications of the U.S.

Even after crude was propped up in February by rising geopolitical risks surrounding the USA and Middle East producer Iran, it's still struggling to recover to the highs of January, with concerns over a global trade war also weighing on prices. The contract rose 50c to $63.51 on Tuesday. Total volume traded on Thursday was about 23 percent below the 100-day average.

The price for Brent crude oil, the global benchmark for the price of oil, was up just 0.04 percent as of 9:16 a.m. EST to $68.05 per barrel.

The net long position in futures and options tops 600 million barrels of oil, the data shows, meaning that in the event of a sharper drop in price, sellers may find a dearth of buyers.

Oil prices have fallen around two per cent today after global stock markets were rocked by China's decision to slap retaliatory tariffs on U.S. goods.

The cuts run until the end of 2018 but Saudi Arabia has said they could be extended in some form into 2019.

An increase in Russian oil output also dented investor sentiment.

Before the rebound late on Wednesday, after the release of the Energy Information Administration (EIA) inventory data, WTI and Brent had hit two-week lows after China proposed a broad range of tariffs on USA exports, feeding fears of a trade war. Buyers initially supported the markets because the American Petroleum Institute (API) reported a surprise draw of 3.28 million barrels of USA crude oil inventories for the week-ending March 30, after analysts had anticipated a modest build in crude oil inventories of 246,000.

Related news:

Hot News

isis-killer-beheading-video-story-top South Africa court adjourns ex- president Jacob Zuma corruption case
Apr 08, 2018 - 01:56
Mngxitama said that Zuma is the representation of RET and therefore needs to be defended. Today, in a defiant appearance outside the court, he continued to deny the allegations.

isis-killer-beheading-video-story-top Steve Kerr slams Warriors for their blowout loss vs Pacers
Apr 07, 2018 - 00:54
Bojan Bogdanovic shot a blistering 83 percent from the floor (11-of-13, including 6-of-7 from 3), finishing with 28 points. With the victory, IN became the first team to earn a season sweep over Golden State since Kerr became head coach.

isis-killer-beheading-video-story-top Manchester United boss Jose Mourinho not motivated by denying Manchester City title
Apr 07, 2018 - 00:51
Following a successful league form, the visitors will be looking forward to registering a famous win over the deflated City side. City have enjoyed some memorable wins at Old Trafford of late, but they have not beaten United at home since November 2014.

isis-killer-beheading-video-story-top Wendy Williams Announces Cardi B Will Reveal Pregnancy On 'SNL'
Apr 07, 2018 - 00:47
By now everyone has probably heard some of the tracks, if not all on Cardi B's debut album, Invasion of Privacy . The 13-track record includes her hits " Bodak Yellow " and " Bartier Cardi ", the latter featuring 21 Savage .

isis-killer-beheading-video-story-top USA imposes sanctions on Putins oligarch allies
Apr 07, 2018 - 00:46
The sanctions will freeze all US assets of those listed and prevent Americans from doing business with them. Shamalov is married to Putin's daughter, Katerina Tikhonova.

isis-killer-beheading-video-story-top Trump touts tax cuts in White Sulphur Springs
Apr 07, 2018 - 00:46
The Pentagon said officials had not yet determined how many troops would be deployed to support border security operations. Joe Manchin , a Democrat who has expressed openness to working with the White House, for opposing the GOP tax plan.

isis-killer-beheading-video-story-top Ex-South Korean President Park Geun-hye Jailed 24 Years For Bribery
Apr 07, 2018 - 00:46
In a presidential by-election triggered by Park's early exit, Moon won an easy victory against wounded conservatives. Last month former leader Lee Myung-bak was charged with corruption over allegations he took bribes while in office.

isis-killer-beheading-video-story-top Tell the family "dinner's ready" with Alexa Announcements
Apr 07, 2018 - 00:44
Alternatively, you can use commands to prompt Alexa to make announcements in her own voice, TechCrunch reports. The feature makes it easy to communicate to everyone in your home where an Echo speaker is present.

isis-killer-beheading-video-story-top Federal Reserve raises key interest rate
Apr 07, 2018 - 00:43
Officials continued to project two more rate hikes in 2018, followed by three moves in 2019 and two further increases in 2020. The financial markets have been edgy for weeks, and Powell's back-and-forth comments have been only one factor.

isis-killer-beheading-video-story-top Tinder gets inadvartently locked out by Facebook, lovelife panic ensues
Apr 06, 2018 - 04:18
Update - 7:30pm: A statement from a Tinder spokesperson confirms the issue has been fixed and the service is back up and running. Hours later, lonely hearts the world round were reporting they could no longer log in to Tinder.

isis-killer-beheading-video-story-top Mild Thursday, Warmer Friday, Storms Saturday?
Apr 06, 2018 - 04:16
Also, even once the main line of storms moves through we could still have the chance for overrunning showers Saturday afternoon. There is now a slight risk for severe weather covering Marengo county, and a marginal risk for most of our viewing area.

isis-killer-beheading-video-story-top Fortnite: 'Battle Royale' adding loot Vending Machines
Apr 06, 2018 - 04:13
Vending Machines will host 3 items, with one item purchasable by wood, stone and metal each. Here's a map of all the Fornite vending machine locations from our friends at PC Gamer.

isis-killer-beheading-video-story-top M5.3 Temblor Shakes Southern California Area, No Damage So Far Reported
Apr 06, 2018 - 04:12
One resident near Beverley Hills said she could feel the ground "rolling". "We live in quake country", Kondo said. Sign up for our breaking news email newsletter: When major local news happens, you'll be the first to know.

isis-killer-beheading-video-story-top Colorado State University research team calls for another above-average hurricane season
Apr 06, 2018 - 04:10
The onslaught of storms left deep wounds across the Caribbean and southern United States that have not yet healed. Researchers at Colorado State said they plan to give updates on their forecast on May 31, July 2 and August 2.

isis-killer-beheading-video-story-top Lockheed Martin hired by NASA to Build Quiet Supersonic X-Plane
Apr 05, 2018 - 01:40
No supersonic commercial aircraft has been in service since British Airways and Air France halted Concorde flights in 2003. Lockheed Martin has a long history of working with NASA and has been part of NASA's QueSST effort since 2016.