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Oil prices drop on trade war concerns

Oil prices drop on trade war concerns

Oil prices extended its plunge on Monday, as trade war fears raised concerns about global crude demand and as Saudi Arabia continued to restore production.

Brent crude futures fell to a low of $60.81 a barrel, hovering near last week’s bottom of $60.75 a barrel, while crude oil hit a low at $54.93 a barrel.  

China warned on Monday of ‘decoupling’ between the U.S. and China after some sources said the U.S. would delist Chinese companies from U.S. stock exchanges.  

Markets are still focusing on the trade war between the world’s two biggest economies and its impact on the global growth, ahead of important talks in October,

Data released today from China, the world’s largest crude importer, signaled an improvement in the manufacturing sector, but the PMI figures concluded the sector remained in contraction for a fifth straight month in September.  

Concerning oil supplies from Saudi Arabia, the Kingdom managed to recover capacity to 11.3 million barrels, thereby easing supply concerns.

According to survey conducted by Reuters, oil prices are expected to stand still this year after the Saudi Arabian unpleasant event failed to raise the prices 

This survey, which consist of 53 analysts and economists, expects Brent crude to average $65.19 per barrel this year, little changed from $65.02 a month earlier. However, this was slightly higher than the average $64.76 for the global index so far this year.

Later in the week, the U.S. will release its jobs report for September, which is mainly used an indicator for the health of the labor market and therefore weigh on the Fed’s monetary decisions.

As of 14:25 GMT, the U.S. dollar index was 0.16 percent up at 98.92 after hitting a peak at 99.11, which is the highest level in three weeks. 

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