- Markets continue to react to headlines surrounding the United States (US)-China trade war.
- The unrest in Iraq and Ecuador helps crude oil prices on Tuesday.
- Coming up: The American Petroleum Institute’s crude oil stock report.
Crude oil prices stayed under pressure on Tuesday as markets started to price the potential negative impact of a prolonged trade conflict between the United States (US) and China. After slumping to a fresh daily low of $51.79, the barrel of West Texas Intermediate (WTI) staged a rebound to $52.50 but struggled to preserve its momentum. As of writing, the WTI was trading at $52.25, losing 1% on a daily basis.
Fading trade optimism drags crude oil lower
Earlier on Tuesday, the South China Morning Post (SCMP) reported that the Chinese delegation was planning to leave the US following Thursday’s high-level trade negotiations rather than staying for the second day of talks on Friday. In the meantime, Bloomberg claimed that the Trump administration was looking to restrict the capital flows from China into the US government pension funds to further weigh on hopes of the sides reaching a deal this week.
On the other hand, concerns over the ongoing anti-government protests in Iraq and Ecuador, which are expected to cause disruptions in crude oil production in these countries, seem to be providing short-term support to crude oil prices.
Later in the day, the weekly crude oil stock report published by the American Petroleum Institue (API) will be looked upon for fresh impetus.
Technical levels to consider
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