Oil rally stalls near $59 as US-China trade jitters return

Bloomberg

Oil’s rally stuttered as uncertainty over the status of trade negotiations between the US and China stoked concerns over global economic growth.
Futures for May fell as much as 1.2 percent in New York. China was said to be pushing back against American demands, raising speculation that trade tensions between the world’s biggest economies will persist. Still, the price drop was cushioned by an American Petroleum Institute report that was said to show US crude stockpiles declined ahead of government data.
West Texas Intermediate for May delivery traded 45 cents lower at $58.84 a barrel on the New York Mercantile Exchange by 11:38 am London time. It fell earlier as much as 1.2 percent to $58.56. The April contract, which expired on Wednesday, declined 43 cents to $58.60.
Crude has surged almost 30 percent this year on Saudi Arabia-led output cuts by the Opec+ coalition that seeks to avert a global glut, and as American sancti-
ons have squeezed supplies from Venezuela and Iran.
“The feel-good factor was dealt a blow in the form of resurfacing trade jitters,” Stephen Brennock, an analyst at PVM Oil Associates Ltd., wrote in a report. “Those putting their betting chips on an imminent price surge will also be eyeing a further downswing in US petroleum stockpiles.”
Brent for May settlement dropped 10 cents to $67.51 a barrel on the London-based ICE Futures Europe exchange. The contract ad-ded 7 cents to $67.61. The global benchmark crude traded at an $8.68 premium to WTI for the same month.
Some US negotiators are worrying that Chinese officials have shifted their stance as they haven’t received
assurances from President Donald Trump’s administration that tariffs imposed on their exports would be lifted after agreeing to changes to their intellectual-property policies, according to people familiar with negotiations.
In a continuation of efforts to hammer out a deal, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing the week of March 25 for high-level talks, said a senior administration official who asked not to be identified.