According to the United State Government data, Oil prices fell on Wednesday and this Is a great deed on the country’s crude inventories, which brought about pressure between the US and China.
US crude and excerpt inventories rose unexpectedly and fuel demand grow in the most recent week.
The Energy Information Administration said on Wednesday, as the sharp outbreak in corona virus cases has started to hit US consumption”.
“Overall this would suggest that the demand recovery we’ve seen from the bottom seems to be stalling,” said Phil Flynn, senior analyst at Price Futures group in Chicago.
“The US President, Donald Trump, said on Tuesday that the outbreak would probably worsen before it got better, a shift from his previously robust emphasis on reopening the economy”.
“Rystad Energy’s Head of Oil Markets, Bjornar Tonhaugen, said Trump’s comments might be welcomed by investors because they are among the most measured by him or his administration so far”.
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“This could be a positive for oil demand prospects. Instead of an uncontrolled, disruptive second wave of lockdown, maybe chances have now increased that the United States will eventually get the spread under control,” Tonhaugen said.
Nonetheless, the conflict between Washington and Beijing put tension on prices after the US told the Chinese consular offices in Houston to shut down and a reliable source said China was considering closing the US consular office in Wuhan.