WTI Crude Oil Prices Drop as US-China Trade Negotiations Going Nowhere

WTI crude oil prices saw a steep decline, coming down from two-month highs, on the back of rising uncertainty surrounding the signing of the

Written by: Arslan Butt • Friday, November 22, 2019 • 1 min read

• Last updated: Friday, November 22, 2019

WTI crude oil prices saw a steep decline, coming down from two-month highs, on the back of rising uncertainty surrounding the signing of the Phase one trade deal between the US and China. At the time of writing, WTI crude oil is trading at around $58.15 per barrel.

Unless trade negotiations between the US and China result in significant progress towards a trade deal, oil markets are likely to come under pressure over mounting worries of slowing demand as global economic growth weakens. Crude oil prices are trading weak ever since troubling news emerged about trouble in trade talks over the issue of tariff rollbacks.

Oil prices had climbed to the highest levels since September over expectations for additional curbs in crude production at the next OPEC meeting coming up in early December. Crude oil also enjoyed some support when China’s Commerce Ministry confirmed its efforts towards reaching a trade agreement with the US towards ending the trade war. However, crude oil dropped as soon as markets felt this trade deal could get delayed until 2020.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.