WTI Crude Oil Weakens Slightly, but Prices Remain Supported. Here’s Why

WTI crude oil prices are trading slightly lower on Tuesday, but remain supported over expectations of a possible easing in US-China trade

Arslan Butt•Tuesday, August 20, 2019•1 min read

WTI crude oil prices are trading slightly lower on Tuesday, but remain supported over expectations of a possible easing in US-China trade tensions and a rally in global stock markets. At the time of writing, WTI crude oil is trading at around $56.07 per barrel.

On Monday, the US government announced an extension of the temporary reprieve granted to Huawei, which would allow the Chinese tech company to continue procuring components from American tech companies to service existing customers. This was taken as a positive development in the trade war, giving markets hope that US and China would work towards resolving their differences soon.

Meanwhile, stock markets worldwide are also rallying, buoyed by the news that the PBOC has lowered corporate borrowing costs while Germany contemplates additional debt to support its economy from weakening further. Crude oil, however, continues to trade bearish as the trade war dominates the sentiment in oil markets, following OPEC’s recent revision of global oil demand forecast.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.