Commodities

Oil rises ahead of US inventories data

2019-05-21 14:17:51 GMT (Economies.com)

Oil prices rose in the European market on Tuesday after falling earlier in the session, while US crude continued to rise for a second consecutive day, after an ease in the US-China trade war concerns as well as rising tensions between the United States and Iran. as traders will be looking later for preliminary data on US crude inventories.

 

By 12: 00 GMT, US crude rose to $63.40 a barrel from the opening level of $63.16, with a high of $63.62 and a low of $63.05.

 

Brent crude rose to $72.28 per barrel from the opening level of $72.12, with a high of $72.51 and a low of $71.74.

 

US crude was up by 0.75% at the end of yesterday's session, while Brent fell 0.2%, the second consecutive daily loss, on correction and profit taking, after hitting a four-week high of $73.38 a barrel earlier.

 

Fears of a worsening trade war between the United States and China have eased after the US government on Tuesday decided to ease trade restrictions on Huawei Technologies in order to curb the disruption of the Chinese company's existing network operations and hardware worldwide.

 

Oil prices fell early on Tuesday as a worsening trade war could slow the global economy and thus weaken the fuel demand.

 

President Donald Trump warned on Monday Iran would be met with "great force" if it attacked US interests in the Middle East, after a rocket attack on the Iraqi capital Baghdad, which Washington suspects is being carried out by militias linked to Iran.

 

Iran said on Tuesday it would resist US pressure and refused to hold further talks under the current circumstances.

 

ANZ Bank said increased tensions in the Middle East meant a higher risk in the price of crude oil.

 

On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) is scheduled to hold an official meeting on June 25-26 to discuss the production policy, but some reports are currently saying that the organization will postpone the meeting to 3-4 July.

 

Al-Falih said that there is consensus within OPEC and its independent allies producers to reduce crude stock.

 

The American Petroleum Institute (API) will release preliminary data on US commercial crude stocks later today, amid expectations of a rise in stockpiles for the fifth week in a row. while official data will be released by the US Energy Information Administration (EIA) on Wednesday.

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