The oil prices around the globe have set forth a drop trajectory after momentary stabilization in the markets. This is on the back of good supply and uncertain demands for the future, which is also mooted by the fact that the renewable energy sector is growing at quadruple the pace when compared to the fossil fuel-powered power plants.
US Crude came up in the green after a rough week gaining about 0.15% to $54.33 per barrel. The contract was heading for a weekly loss of about 4%. The situation was similar to Brent crude, which was up 0.1% in the trading sessions at $59.68 per barrel, which will also have accumulated a weekly loss of about 4% in the past week’s trading sessions.
The worries that loom over global oil supply are multi-fold in their demeanor, and US-China trade tensions are of imperative importance there. The two countries haven’t been able to subdue the incumbent attitude towards getting a trade deal done, which has hampered the industrial production of china, which according to the data released on Friday, was down for the 6th straight month. Meanwhile, Japan also facing an economic slowdown showed no signs of recovery as the factory activity in the country sank to more than a three year low in the last month.
The uncertainties in the oil market will prevail through this year and onto the net, one mainly on the back of global economic slowdown and subdued demand for fossil fuel. Many economists believe that if the top three economies of the world are unable to get their act together and lead the global trade like in the past, it would be very difficult to come out of a now imminent recession that is facing the world economies.
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