Oil hsite, between political tensions and rising US stocks

New York (AWP / AFP) – Oil prices ended in a disorganized fashion on Wednesday, hovering between lingering uncertainty over Sino-US trade talks, possible geopolitical tensions in the Middle East or Ecuador, and abundance of crude stocks in the United States.

In London, Brent crude oil from the North Sea for December delivery rose 8 cents, or 0.1%, to finish at 58.32 dollars.

In New York, the US barrel of WTI for November, the reference to the United States, dropped 4 cents, or 0.1%, to close at 52.59 dollars.

The prices "temporarily benefited during the meeting from a certain enthusiasm on the possibility of a Sino-US trade agreement," said Robert Yawger of Mizuho.

While negotiations must resume Thursday in Washington, the tone between the two countries had risen in recent days; the United States has in particular announced sanctions against Chinese entities and officials suspected of participating in the "crackdown" against Uyghur Muslims in Xinjiang.

According to the Bloomberg agency, however, Beijing remains open to a partial agreement if US President Donald Trump waives the additional tariffs he has threatened to implement by the end of the year.

What to appease the fear of a new escalation of trade sanctions likely to slow a little more global growth, and therefore the demand for energy.

Market players are also keeping a close eye on the situation in the Middle East as Turkey on Wednesday launched, as it pledged, its offensive against Kurdish forces in northeastern Syria.

Prices could also have "partly" benefited from news from Ecuador "where about a third of oil production is threatened by ongoing protests," said Carsten Fritsch, an analyst for Commerzbank.

The price per barrel, however, fell slightly after the publication of the weekly report of the American Agency for Energy Information (EIA).

According to this document, crude oil inventories rose for the fourth consecutive week in the United States while production rose to a record level.

At the peak of the refinery maintenance season, the activity of the refineries slowed down at the same time: they operated at 85.7% of their capacity, compared to almost 95% a month ago. Their pace thus falls to their lowest level since 2017.

"Investors are suddenly reminded that there is a lot of oil available in the country and demand is not necessarily there," says Yawger.

bur-jum / alb