Oil prices are heading towards a weekly loss, amid the chaos of customs duties

Oil prices tend to record a weekly decline in light of investors ’assessment of conflicting messages on trade between the United States and China, which added more mystery to the global markets that are ravaged by the customs duties imposed by President Donald Trump.

Brent crude rose approaching $ 67 a barrel on Friday, but is heading towards a loss of approximately 2% this week. The “West Texas” crude was hovering near $ 63, and it is expected to decrease 2.9 percent during the week.

On Thursday, the US President stated that his administration was holding talks with China on trade, although Beijing had previously denied any negotiations on reaching an agreement.

Fears fees press prices
The oil has declined sharply this month due to fears that the wide customs duties imposed by Trump, as well as the retaliatory measures of commercial partners, including China, will paralyze economic activity and curb energy demand.

In an attempt to reassure American oil companies, Energy Minister Chris Wright said that the commercial turmoil will be passing, and that the administration completely supports increasing the production of crude oil.

The “OPEC+” coalition decided to raise the standardized production levels, which contributed to increasing the downward pressures on prices, and raised fears of a surplus in supplies. The coalition is scheduled to meet on May 5 to discuss production plans for June, and Reuters reported this week that some members seek a significant increase in production amid discussions on compliance with productive shares.

However, some indicators show that the oil market may witness strength in the short term. The immediate time differences of Brent and West Texas, the mediator of this month within the bullish “Bakordechen” structure, have expanded, referring to the scarcity of supplies.