Oil prices rallied on Thursday to rally above a one-week low, after a heavy loss yesterday on US Secretary of State comments and a deepening US-China trade dispute, supported by the International Energy Agency’s report, Commercial raw materials in the United States.
By 09: 50 GMT, US crude rose to $ 70.95 a barrel from the opening price of $ 70.55 and recorded a high of $ 71.13 and a low of $ 70.45.
Brent crude rose to $ 74.70 a barrel from the opening price of $ 74.05 and recorded a high of $ 75.09 and a low of $ 73.86.
US crude oil lost yesterday’s 4.8%, the first loss in four days, and the biggest daily loss since September 1, 2015, hitting a two-week low of $ 70.01 per barrel.
Brent lost 6%, its biggest daily loss since November 27, 2014, and the lowest level in three weeks at $ 73.03 per barrel.
Minister of Foreign Affairs of America ”Mike Pompeo” said Washington would consider requests from some countries to free it from the sanctions the United States would apply in November to prevent Iran from exporting oil abroad.
The administration of President Donald Trump has threatened to impose a new tariff of about 10 percent on Chinese goods worth $ 200 billion. The decision came just days after a 25 percent tariff on Chinese goods worth $ 34 billion.
US administration has set a two-month period to determine the list of Chinese goods to be subject to that tariff before actual implementation. China has threatened to take countermeasures immediately, raising concerns again about the worsening trade conflict between the world’s biggest oil consumers.
The International Energy Agency (IEA) said on Thursday that although the market welcomed the rise in production from OPEC and Russia, the rise comes at the expense of world production reserves, which may extend to the limit.
This supports the current rise in oil prices and appears likely to continue.
The country’s trade inventories fell 12.6 million barrels in the week ending July 6, exceeding expectations of a 4.1 million barrel drop, the biggest weekly drop since September 2016, the Energy Agency said on Wednesday.
According to this data, commercial stocks fell to a total of 405.2 million barrels, the lowest level of February 2015, below the five-year average of 425 million barrels, in a positive sign of demand levels in the world’s largest oil consumer.
For the fourth week in a row, US production remained unchanged for the fourth week in a row, with total production at 10.90 million barrels per day, the highest level ever for US oil production.