Oil steadied near $55 a barrel in New York as persistent concerns over slowing demand jostled with expectations that U.S. crude stockpiles will continue to tighten. Futures were little changed after rising 7.5% in the past three days. American inventories probably dropped by about 2.3 million barrels last week, according to the median estimate in a Bloomberg survey before Energy Information Administration data due Wednesday.
National Average Price for Regular Unleaded – Current: $2.671; Month Ago: $2.749; Year Ago: $2.866. National Average Price for Diesel – Current: $2.973; Month Ago: $3.004; Year Ago: $3.154.
American Dollar to Canadian Dollar = 0.756509; American Dollar to Chinese Yuan = 0.141659; American Dollar to Euro = 1.120001; American Dollar to Japanese Yen = 0.009453; American Dollar to Mexican Peso = 0.051357.
Oil prices were higher Friday as the futures market tried for back-to-back recovery sessions after the market skidded into bear territory this week, dragged down by concerns a prolonged trade war will sap energy demand. “Oil is enjoying the reprieve from a few days without flare-ups in the trade war,” said Craig Erlam, senior market analyst in the U.K. at Oanda. “Prices have plummeted since the start of the month, as the conflict surprisingly escalated in the aftermath of talks in Shanghai, further heightening the risks to the global economy,” he said.
Crude prices rallied Thursday from near their lows for the year as investors’ anxiety about global growth prospects showed signs of easing. Thursday’s uptick left Brent down 8% on the week, with U.S. crude down 6.5%. Those losses were larger before a media report late Wednesday said that Saudi Arabia was considering taking action to halt heavy selling.
Brent has plunged more than 9% over the past week after U.S. President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports from Sept. 1, sending global equity markets into a tailspin. Elsewhere, data indicating a larger-than-expected drop in U.S. crude stocks offered some support to oil prices after several weeks of large draws on inventories.
Oil prices rose more than 1% on Tuesday as traders betting on falling prices bought back contracts to lock in profits after declines over the last three sessions due to the escalating trade tensions between China and United States. Brent fell more than 3% on Monday as traders worried the ongoing trade dispute between the world’s two biggest oil buyers would dent demand, helping to prompt Tuesday’s short-covering.
Oil prices fell on Monday amid renewed global economic growth concerns after U.S. President Donald Trump vowed to escalate the trade war with China with more tariffs, which would likely limit fuel demand in the world’s two biggest crude consumers. “Crude oil futures experienced significant headwinds as global risk appetites remain feeble over subdued global growth and a sudden escalation in the Sino-U.S. trade dispute,” said Benjamin Lu, commodities analyst at Singapore-based brokerage Phillip Futures.
National Average Price for Regular Unleaded – Current: $2.721; Month Ago: $2.730; Year Ago: $2.873. National Average Price for Diesel – Current: $2.987; Month Ago: $3.001; Year Ago: $3.156.
American Dollar to Canadian Dollar = 0.755564; American Dollar to Chinese Yuan = 0.144148; American Dollar to Euro = 1.110375; American Dollar to Japanese Yen = 0.009363; American Dollar to Mexican Peso = 0.051759.