According to reports, crude oil futures dropped by over 0.3% on Friday, i.e. 08 November 2019 owing to market uncertainties lingering on the prolonged US-China trade dispute. Despite the two nations trying to come up with a new trade deal, market participants are still unsure whether or when the new agreement would happen.
The global crude oil benchmark, Brent crude, dropped by 16 cents a barrel despite rising by 0.9% the previous day.
Over the last year, the continued trade dispute between the two economies has capped economic growth globally. This has led to analysts forecast reduced crude oil demand. In the same line, this has also resulted in speculations of a supply gut in 2020.
Earlier during the week, the Chinese Ministry of Commerce had announced that the two nations had come to terms on the trade tariffs. Despite having announced that trade tariffs will be cancelled in a phased manner, a timeline for the was not specified.
However, the Sino ministry’s announcement was clouded soon after sources claimed that the US administration was facing internal criticism on the same.
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