20-07-2018 03:15 PM
Oil prices trade higher on Friday as remarks that Saudi Arabia’s exports would drop in August improved hope for a global shortage in crude supplies.
Crude oil traded at $68.53 at the time of preparing this report.
Saudi Arabia's OPEC Governor Adeeb Al-Aama made a announcement that the kingdom expects crude exports to drop by about 100,000 barrels per day in August as it confines excess output.
Oil prices were also enhanced on forecasts that inventories at the U.S. oil delivery hub in Cushing, Oklahoma dropped 1.8 million barrels.
In spite of today’s profits, oil prices were set to drop for the week along with trade disagreement between the U.S. and China.
According to Mr.Ponmudi, Expert Analyst & Managing Director, Enrich Commodity - Markets are now anxious, just not about a trade war, but also a currency war.
The Chinese yuan drooped and further added on Friday after the China’s central bank weakened its daily reference rate by the most since June 2016.
The USD/CNY pair traded huskily lower and fell to a one-year low after The People’s Bank of China (PBOC) weakened the fixing by 0.9% to 6.7671 per dollar on Friday.
Traders were anxious that lower oil demand in the U.S. and China reasoned by an economic slowdown from their trade war would have noteworthy collision on the market.
On the other hand, the U.S. accounted for 20.2% of global oil demand in 2017 while China consumed 13% of the world's oil previous year.