By Siyi Liu
Singapore (Reuters)-Oil prices decreased on Wednesday while the rise in stocks in the United States and the market are concerned about a new Sino-US trade war compensates for the renewed pressure from President Donald Trump to eliminate the Iranian gross exports.
Brent crude -to -gross term contracts have dropped by 21 cents, or 0.28%, at $ 75.99 per barrel of 0701 GMT. Us West Texas Intermediate Crude (WTI) lost 11 cents, or 0.15%, at $ 72.59.
The oil exchanged Tuesday in a large fork, with WTI falling at a time of 3%, its lowest since December 31, after China announced prices on American imports of oil, liquefied natural gas and of coal in retaliation for American samples from Chinese exports.
The prices, however, rebounded after Trump restored the “maximum pressure” campaign on Iran to reduce his nuclear program which he promulgated during his first mandate which reduced zero Iranian gross exports.
Eat on the market on Wednesday was data from US gross stocks higher than expected, Jun Rong Yeap said market strategist at IG.
Gross shares increased by 5.03 million barrels during the week ended on January 31, according to market sources, citing the figures for American Petroleum Institute.
Fuel stocks increased by 5.43 million barrels and distillate actions fell by 6.98 million barrels, the API said, according to sources.
Official data from US government’s oil stocks should be published on Wednesday at 1530 GMT.
The rise in raw stocks and fuel in the greatest low consumption of oil consumption in the world, which added to investors to worry about the impact of prices on the global prospects of economic and energy demand.
The impact of reprisals in China on American energy imports will be limited “since neither the global supply nor the demand for these basic products are modified by Chinese prices,” analysts of analysts said on Tuesday Goldman Sachs in a note.
The two countries will be able to find alternative markets, said the note.
As for Iran, Trump restored its “maximum pressure” campaign on Iran on Tuesday, which includes efforts to make its oil exports to zero in order to prevent Tehran from obtaining a nuclear weapon.
While Trump said he was open to an agreement with Iran, he signed a presidential memorandum re -imposing Washington’s difficult policy on Iran. The plan could have an impact on approximately 1.5 million barrels per day of oil that the country exports, Anz analysts said on Wednesday, citing ship monitoring data.
“Repression on Iran can be what is necessary to stabilize the lowering feelings for oil prices for the moment and there may be room for a recovery, at least in the short term,” said Ig’s Yeap .
(Report by Siyi Liu to Singapore and Laila Kearney in New York; edition by Christian Schmollinger, Kim Coghill and Saad Sayed)
