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Oil Prices Slide Amid Trade Concerns, Profit Taking

Published 06/29/2018, 01:17 AM
Oil prices slid on Friday
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Investing.com – Oil prices slid on Friday, with concerns about escalating trade tension between the U.S. and its major trade partners being cited as catalyst for the selling.

Crude Oil WTI Futures for August delivery were trading at $73.17 a barrel at 1:20AM ET (05:20 GMT), down 0.40%. Brent Oil Futures for September delivery, traded in London, were also down 0.2% at $77.45 per barrel.  

Meanwhile, Shanghai Crude Oil WTI Futures for September delivery climbed 0.6% at 494.80 yuan per barrel on Friday.

Friday's falls came as trade disputes between the United States and economies including China, India and the European Union continued to weigh on market sentiment.

U.S. President Donald Trump’s top economic adviser Larry Kudlow said on Wednesday that the president is not retreating on China, although Trump’s plan to crack down on foreign investment is less harsh than many had expected.   

Traders said Friday's dip could also be a result of profit-taking. Greg McKenna, chief market strategist at AxiTrader said the surging oil price rises had "exhausted the bulls."

Oil prices have been rallying since the beginning of the year on tightening market conditions and voluntary supply cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC). Meanwhile, potential U.S. sanctions against OPEC-exporter Iran are also supporting oil prices.

Unplanned supply disruptions from Libya to Venezuela also remained in focus.

Last week, the Organisation of Oil Exporting countries (OPEC) decided to raise output following a key meeting in Vienna. While the decision was widely anticipated, the supply boost was less than some investors had anticipated.    

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