Oil prices increase for first time in three days amid trade war between the U.S and China.
Crude oil manufacturers like Brent crude futures gained 0.7 percent profit by selling each barrel for $76.43. The company’s profit went down by 1.8 percent on Tuesday. Another company called U.S. West Texas Intermediate crude features posted an increase in profit of 0.4 percent by selling each barrel at $66.7. This company’s profit also went down by 1.3% on Monday.
In the past three days both the companies lost about $10 per barrel despite of reaching a high in four years in the first week of October.
This is the worst performance for both the crude oil companies since 2016.
Global crude oil producers like Saudi Arabia, the U.S. and Russia alone meet a third of global crude demand. These countries sold 33M per day in the month of September. The figures show an increase of 10M per day since 2010.
From next week, the U.S. will set new sanctions on Iran’s crude oil production, and exports from the country have already begun to decline.
Once the sanction is cleared, Russia and Saudi Arabia will inject sufficient crude to meet the demand.
In a volatile market situation, reports suggested that last week, U.S. crude inventories rose 5.7 barrels, more than 4.1B barrel build.
Additionally, the U.S. has targeted Chinese products as it imposed tariffs worth of $250B on Chinese goods. In return, China imposed retaliatory duties on U.S. good worth of $110B.