The nice days long increase in the price of oil, that is a shaky number, so our words. Because he was based on hopes that the OPEC further cuts their output, and that the trade war will go off lightly. And today? That's exactly what we had warned about (badly hidden self-praise). The trade war is entering the next stage of escalation. China announces new tariffs against the US in the amount of $ 75 billion. Affected are 5,078 products, including cars, but also oil imports (5% inches). Therefore, Chinese importers will probably buy less oil from the US, because it will be more expensive compared to oil from other countries.
Its like in a Casino with the oilprice, but what do you think about that?
The API reported a massive cut in US crude oil inventories on Tuesday and last week. The stocks in the important camp Cushing should have fallen sharply. Actually, it was the biggest, weekly mining since June. If the EIA also reports a similar reduction in stocks this afternoon, the oil price should once again benefit from this.