UPDATE 7-Oil rises on signs of warming U.S.-China tensions, military action in Syria By Reuters


© Reuters. UPDATE 7-Oil rises on signs of warming U.S.-China tensions, military action in Syria

* China open to partial trade deal with U.S. – reports

* Turkey started operation in northern Syria

* U.S. weekly crude stocks rise more than expected – EIA

* Ecuador could lose over a third of output due to unrest (New throughout, updates prices, market activity and comments, new byline, changes dateline, previous LONDON)

By Laila Kearney

NEW YORK, Oct 9 (Reuters) – Oil prices rose on Wednesday following media reports that China was open to a partial trade deal with the United States and after Turkey launched a military operation in northern Syria, but a build in U.S. crude inventories limited gains.

Brent crude was up 32 cents at $58.56 a barrel by 11:04 a.m. EDT (1504 GMT), and U.S. West Texas Intermediate crude was at $52.98, up 35 cents.

U.S. crude stocks grew more than expected last week, rising by 2.9 million barrels, compared with analysts’ expectations for an increase of 1.4 million barrels, the Energy Information Administration said. saw a larger-than-expected build in part by two things: refining utilization rates fell once again – some of the maintenance we’ve been hearing about over the past week is continuing to have an impact,” said Tony Headrick, energy market analyst at CHS Hedging. “Additionally, total crude oil production rose.”

U.S. crude oil production rose to a fresh record of 12.6 million barrels per day last week. from the United States and China, the world’s top two economies, will meet in Washington on Thursday in the latest effort to hammer out a deal aimed at ending a long-running trade dispute that has slowed global growth.

Tensions between the two sides rose this week as the United States imposed visa restrictions on Chinese officials and placed some major Chinese companies on a blacklist. is still open to agreeing a partial trade deal, Bloomberg reported on Wednesday, citing an official with direct knowledge of the talks. Financial Times also reported that China was offering to increase annual purchases of U.S. agricultural products as part of efforts to secure an interim trade agreement with Washington. oil has, just like other riskier assets, received a boost from news that China is open to accept a partial trade deal,” Saxo Bank commodity strategist Ole Hansen said.

Commerzbank (DE:) analyst Carsten Fritsch said if the U.S.-China talks fail, “the oil price risks suffering a renewed slide because concerns about demand would then increase considerably again, especially looking ahead to the coming year”.

Turkey launched a military operation into Syria, President Tayyip Erdogan said, adding the offensive aimed to eliminate a “terror corridor” along the Turkish border. say the attacks could impact the economy of the oil-producing Kurdistan region in Iraq, and energy prices.

Protests also threatened oil production in Ecuador and Iraq, members of the Organization of Petroleum Exporting Countries (OPEC).

Saudi Aramco Chief Executive Amin Nasser said there was no doubt Iran was behind September’s attacks on Saudi oil facilities, and warned such strikes may continue if there is no concerted international response.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *