Oil prices are declining due to supply fears

Global oil prices have declined significantly with the increasing economic concerns resulting from the trade war between the United States and China, which led to a decrease in demand for crude.

Brent crude futures decreased by 1.51%, to $ 65.86 a barrel, while US West Texas Intermediate crude futures fell 1.5%, to reach $ 62.05 a barrel. Prices witnessed a slight increase in the previous two sessions, but they recorded a weekly decrease by more than 1%.

The director of market research at Tradesh Energy, Gary Kaningham, indicated that the anticipation of US -Chinese talks is shadowly on the global demand for oil. He said that failure in these talks could lead to a greater decline in demand from China.

The global market is witnessing a turmoil due to contradictory signals from Washington and Beijing on progress in calming the trade conflict that threatens global economic growth. While US President Donald Trump confirmed negotiations with China, Treasury Secretary Scott Besent did not support this claim, while Beijing denied any talks.

In another context, investors are awaiting the results of nuclear talks between Iran and the United States in Amman. The Iranian Foreign Minister, Abbas Araqji, expressed his warning of the success of the negotiations. On the other hand, the official Iranian media reported the death toll from the explosion in Bandar Abbas Port, to at least 70 people. It is expected that some members of the OPEC alliance+ will suggest increasing oil production for the second month in a row in their next meeting.