Oil Price Fundamental Daily Forecast – Resumption of US-China Trade Talks Underpinning Prices

Monday is a U.S. bank holiday so barring any surprise moves from the United States or China, prices could remain rangebound throughout the session. Furthermore, the path of the Hurricane hasn’t been determined yet so that is another variable that should be watched.
James Hyerczyk
Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading lower on Friday as the euphoria from this week’s bigger than expected American Petroleum Institute (API) and Energy Information Administration (EIA) weekly inventory drawdowns appear to be wearing off.

The news may be enough to prop up prices along with a slight easing of tensions between the United States and China, however, it’s not likely strong enough to offset worries over slower demand growth due to a weakening global economy and a possible U.S. recession.

At 10:29 GMT, October WTI crude oil is trading $56.18, down $0.53 or -0.93% and December Brent crude oil is at $59.59, down $0.19 or -0.32%.

WTI and Brent crude oil are in a position to finish the week higher, but the upside momentum appears to be fading at the end of the week. The events this week only prove what’s important to buyers at this time:  the OPEC-led supply cuts are working to reduce U.S. supply despite record production, and that there will be further gains down the road if the planned trade talks between the United States and China progress.

Trade Talks Resume

The United States and China verified yesterday that they will resume trade talks next Thursday. President Trump said the U.S. and China are set to have trade talks “at a different level.” Earlier in the day, China softened its stance saying it’s willing to resolve the trade war with a “calm attitude” and indicating it won’t retaliate against Trump’s new tariff threat immediately. China also said the Chinese and U.S. trade delegations have maintained “effective” communication.

Hurricane Dorian

Some people are talking about Hurricane Dorian’s impact on oil prices as it races toward the Atlantic Coast of Florida. At this time, it’s a non-event because there are no oil platforms on the East Coast of Florida.

Oil companies will begin to take the appropriate steps to secure their oil platforms and to protect workers if the hurricane crosses over Florida and enters the Eastern Gulf of Mexico next week.

Daily Forecast

Monday is a U.S. bank holiday so barring any surprise moves from the United States or China, prices could remain rangebound throughout the session. Furthermore, the path of the Hurricane hasn’t been determined yet so that is another variable that should be watched.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.