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Crude oil prices rise as China moves to curb yuan decline

2019-08-06 12:05 pm | Resource: News | No Views : 100

 Crude oil prices rise as China moves to curb yuan decline

Oil prices rebounded slightly on Tuesday after China moved to stabilize the yuan's decline, helping ease fears about a currency war. Mutual moves between two of the world's largest economies have also led to a decline in world oil markets. Global oil markets fell by about 8 per cent, the biggest drop in more than four years.

Chinese threats to expand purchase of Iranian oil

On the other hand, Bank of America Merrill Lynch issued a warning this week from a possible scenario for the worst case involving China's purchase of Iranian crude oil

Wall Street warned that oil prices could fall to $ 20 or $ 30 a barrel if China decided to buy oil from Iran. The bank issued the warning as part of its oil price forecast. The Bank's BofA Merrill Lynch Global Research report revealed that the company still expects Brent prices to remain at $ 60 until next year.

However, the report claims that if China decides to repeat purchases from Iran, oil prices could fall by between $ 20 and $ 30 after this move. China did not explicitly threaten to intensify its purchases of Iranian crude oil, but the state promised countermeasures in light of recent US actions.

China's Ministry of Commerce announced this week that it will take appropriate action in response to the US decision to cut 10% additional tariff on Chinese goods worth 300 billion dollars. By canceling large orders for US agricultural products with plans to move to other global suppliers. The country recently devalued its currency, leading to a decline in global markets.

Crude Oil Trading
  • Brent crude rose 10 cents, or 0.2 percent, to 59.91 dollars per barrel, after falling earlier to 59.07 dollars, the lowest level since January 14.
  • WTI futures were up 26 cents, or half a percent, at $ 54.97 a barrel on a short-covering basis.

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Best Opportunities, Vision and Technical Analysis for The Oil 17 April 2019

(CURDE OIL - WTI ) We offer you oil analysis denominated by US dollar on Wednesday, April 17, 2019, with the most important forecast for the price of oil denominated by US dollars in the market. Time frame Used - four hours Oil is moving in a sideway direction in the near term. The purchasing power managed to push oil higher to close at the end of trading today, rising…

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