Fundamental Comment

Oil prices snap some gains, yet set for weekly advance


Oil prices fell today, abandoning a reversal of part of the gains on their way to their highest weekly level since early July amid uncertainty in the world markets about the stability of the trade war and support edited by oil by the decline of U.S. inventories.

As of 11:14 GMT, Brent crude futures today fell sharply, reaching $60.06 per barrel, while Brent futures opened at $60.91 per barrel today.

West Texas Intermediate (WTI) crude also fell today to $55.88 per barrel. West Texas Intermediate futures opened the day at $56.58 a barrel, the session's lowest level at $55.69 a barrel.

On the other hand, Hurricane Dorian poses another threat to crude oil production, as the storm is expected to head into the Gulf of Mexico over the weekend, which in turn will prompt oil producers to halt production if these forecasts prove correct.

Crude oil, has received some support from a 10 million barrel drop in U.S. inventories, the lowest level since October, according to evidence released by the U.S. government on Wednesday.

Growing concerns about the global economic slowdown and the impact of oil demand on U.S.-China trade war have clearly played a clear role in maintaining oil gains this week.

Events developed during the trade war between the two largest economies in the past period, especially after some increased the likelihood of a definitive solution to end the trade war, where both sides last week announced their rejection of the recent escalation in customs duties declared by both Two.

Markets are waiting for the outcome of the recent talks soon between the world's two largest economies to end the series of damage to the global economy caused by the U.S-China trade war.

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