Oil prices drop as fears over trade war, weaker demand return to haunt market | The Guardian Nigeria News - Nigeria and World News

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“The euphoria was short-lived, with an unexpected fall in exports from China highlighting the impact of the trade conflict.”

West Texas Intermediate oil futures were 10 cents, or 0.2 per cent, lower at 58.92 dollars a barrel. The benchmarks fell 0.2 per cent and 0.3 per cent respectively on Monday.

Data released on Sunday showed exports from China in November fell 1.1 per cent from a year earlier, confounding expectations for a 1 per cent rise in a Reuters poll. U.S. President Donald Trump does not want to implement the next round of tariffs, U.S. Agriculture Secretary Sonny Perdue said on Monday – but he wants “movement” from China to avoid them.

Analysts said that, though overshadowed, for now, the move by ‘OPEC+’ – the Organisation of the Petroleum Exporting Countries and associated producers like Russia – to deepen output cuts from 1.2 million barrels per day to 1.7 million bpd would remain a mid-term support factor.“Despite the voluntary restraint from OPEC, world oil markets remain well supplied … with non-OPEC output expected to rise by well over 2 million bpd next year, with big increases in the U.S.

 

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