Fundamental Comment

Oil prices fluctuate on global growth concerns

Oil prices fluctuate on global growth concerns

Oil prices fluctuated after the new U.S. tariffs on Chinese imports came into effect on September 1, adding to concerns about further slowdown in global growth and thereby reduced demand for energy products.  

As of 09:35 GMT, Brent crude oil futures fell 0.76 percent at $58.80 a barrel, as it opened today at $58.83 a barrel, the session's highest level at $58.88 a barrel,

West Texas crude was 0.4 percent down at $54.88 a barrel after the prices opened at $54.84 and the highest level was recorded at $54.91. 

President Donald Trump's administration has begun charging 15 percent for Chinese imports worth more than $125 billion, including smart talking devices and Bluetooth headsets, as well as many types of shoes. 

In response, China has started charging some U.S. goods on a $75 billion target list Including agricultural commodities and oil for the first time. 

China's manufacturing prospects deteriorated further for the last month, the latest evidence of the impact of trade conflict on the global economy.

However, President Donald Trump said Sunday that direct talks between U.S. and Chinese negotiators scheduled for this month are continuing, but investors do not see a big chance to calm the trade war over the short term.  

Separately, data from Russia showed that its crude production rose in August to 11.294 million barrels per day, the highest level since March, to exceed the level that Moscow pledged to curb production under an agreement with other producers. 

This follows a report that OPEC increased production in August for the first time this year because of increased supplies from Iraq and Nigeria, which were overshadowed by Saudi cuts and losses from U.S. sanctions on Iran. 

It is worth mentioning that under the agreement between OPEC members and other producers outside, Russia agreed to cut production by 228,000 barrels per day from October 2018.  

The U.S. dollar continued its rally for a sixth session in a row, hitting a new record high at 99.04, taking advantage of haven demand amid the undergoing trade war.

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