Oil is settling near its lowest level in two months
Shafaq News / Oil prices stabilized today, Tuesday, after closing at the lowest level since June, amid worsening short-term demand expectations and further deterioration in the relationship between the two largest economies in the world.
The stop of recovery in Asian demand and more supply from the OPEC + alliance led to a bleak short-term outlook for oil prices, signaling a return of oversupply concerns.
US President Donald Trump said he intends to curb US economic ties with China, threatening to punish any US company that creates jobs abroad and prevents companies operating in China from winning federal contracts. He did not say when he would implement the policies, but he framed these moves as part of a second term agenda.
Brent crude fell for the month of November by 0.33% to $ 41.87 a barrel on the ICE Futures Exchange at 5:00 pm GMT, after closing at its lowest level since June 30 on Monday, and the global benchmark lost 7.4% so far this month.
Texas crude for delivery in October fell 2.9% to $ 38.95 on the New York Mercantile Exchange.
Oil futures on the Shanghai International Energy Exchange were down 0.1% to 272.3 yuan, after falling 4.2% in the previous session.
China, which has played a large role in supporting oil prices this year, will likely not be able to offer the same amount of hand over the next few months. The world's largest importer of crude bought less quantities for the second month in August, and its purchases are likely to remain low as independent refiners' stakes run out after a buying spree earlier this year.
