Oil prices recorded lower on trade tensions
As per the news, oil prices registered on lower note because of the pressured by tensions between the United States of America and China, but some supportive economic information in Europe reduced losses. Reportedly, Brent crude oil prices decreased to almost $43.18 per barrel, whereas, the US West Texas Intermediate(WTI) crude futures dropped to five cents to nearly $41.02 a barrel. Both benchmarks were on path for a moderate week-wise increment.
Recently, China ordered the US to halt its government office in the city of Chengdu, responding to an American demand this week that China stop its Houston office. The reformed tensions between the world’s leading two oil consumers raised concerns about oil demand, which has already faces problems including increasing coronavirus cases in the United States of America.
The revived pandemic has damaged the United States economic outlook. Some stated have reformed restrictions to battle the recent COVID-19 outbreak, which is anticipated to reduce fuel consumption. Many Americans filling for jobless benefits hot 1.416 million previous week, unexpectedly gaining for the first time in almost four months. The oil prices could observe a near-term correction of an improvement in fuel demand lowers further, especially in the United States, said by the researchers.