Oil declines 1.6% with the anticipation of trade talks between America and China

Brent crude futures decreased at a settlement 1.66% to $ 61.12 a barrel today, Wednesday, after it recovered from a sharp selling wave earlier in the week, with investor concentration turning into trade talks between the United States and China early next week.

West Texas Intermediate crude futures fell 1.73% to $ 58.07 a barrel.

Al -Rawatan fell to the lowest level in 4 years this week after the OPEC+ alliance decided to accelerate the pace of production, which strengthened fears of the exhibit at a time when American customs duties increased from demand concerns.

It is expected that US and Chinese officials will meet in Switzerland, while the first step may be towards ending a trade war between them that caused the global economy turmoil, and commercial talks between the United States and China come after weeks of escalating tension that witnessed the rise in customs duties on the imports of goods between the two largest economies in the world to more than 100%.

“The meeting may indicate the improvement of relations, but the expectations for achieving a breakthrough are still low, unless the United States gets major commercial concessions, it is unlikely to happen more calm,” said Market analyst at Xi Tiago Duarti.

The Federal Reserve (the US Central Bank) kept the interest rates fixed, but said that the risk of high inflation and unemployment has increased, which increases the ambiguity of economic expectations while the bank is struggling to deal with the impact of customs duties policies pursued by the American President.

The two standard crudes were under pressure due to data from the US Energy Information Administration, which showed an unexpected rise in gasoline stocks in the United States last week, raising fears of poor demand.

The Energy Information Administration said today that US crude oil stocks decreased two million barrels to 438.4 million barrels last week, compared to analysts’ expectations of 833 thousand barrels.