At the time of writing, WTI Crude oil prices were down by 2.52% on the day as a Bloomberg report said that China would like to have more talks before signing Trump’s ‘Phase one’ deal.
The US had agreed to scrap the October tariffs increases, something that was communicated by the White House last week. However, the Chinese government would now like to see the December tariff hikes also delayed or scrapped to go ahead with the new deal; in return, China will buy between 40 to 50 billion US agriculture goods, amongst other concessions.
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As it stands now, there might not have been any agreement to start with, especially as nothing was agreed to in writing, and, understandably, crude oil prices are lower on the latest news.
Technically, crude oil prices almost reached the June to July range mid-point at $55.47. The mid-point has been my target of the last few weeks as crude oil prices are trading within the broad range of $50.52 to $60.88. The latest news could send crude oil prices to test the October low at $51.05, but I suspect traders will see a slide to the $50.52 – $52.55 range as chance to buy crude oil with a stop below $50.52.Download our latest quarterly market outlook for our longer-term trade ideas.
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