Sino-US trade war would lead to a global economic slowdown
\nnews desk
\nSINGAPORE
\nOil prices edged up on Friday, shaking off previous losses after China said it would hold talks with the US government on January 7-8 to look for solutions to the trade disputes between the world\u2019s two biggest economies.
\nInternational Brent crude futures were at $56.12 per barrel at 0542 GMT, up 17 cents, or 0.3 percent, from their last close.
\nUS West Texas Intermediate (WTI) crude oil futures were at $47.25 per barrel, up 16 cents, or 0.3 percent.
\nBoth crude benchmarks were down earlier in the session on concerns that the Sino-American trade war would lead to a global economic slowdown.
\nTraders said the firmer prices came after China\u2019s commerce ministry said on Friday that it would hold vice ministerial level trade talks with US counterparts in Beijing on Jan. 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies and roiling global financial markets.
\nThe two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and stoking fears of a global economic slowdown.
\nData for December from the Institute for Supply Management (ISM) on Thursday showed the broadest US slowdown in growth for more than a decade, as the trade conflict with China, falling equity prices and increasing uncertainty started to take a toll on the world\u2019s biggest economy.
\nLeading economies in Asia and Europe have already reported a fall in manufacturing activity.
\n\u201cLed by a sharp fall in the US ISM and China\u2019s PMI falling below 50, the global manufacturing PMI fell to 51.5 in December (52.8 previously), a 27-month low,\u201d Morgan Stanley said in a note following the release of the ISM data.
\n\u201cThe recent run of incoming data, coupled with global tightening financial conditions, has increased the downside risks to an already moderating global growth outlook,\u201d the US bank said.
\nDespite the global market turmoil, traders said oil prices are expected to receive some support as supply cuts announced late last year by the Organization of the Petroleum Exporting Countries (OPEC) start to kick in.
\nOPEC oil supply fell by 460,000 barrels per day (bpd) between November and December, to 32.68 million bpd, a Reuters survey found on Thursday, as top exporter Saudi Arabia made an early start to a supply-limiting accord, while Iran and Libya posted involuntary declines.
\nOPEC, Russia and other non-members \u2014 an alliance known as OPEC+ \u2014 agreed last December to reduce supply by 1.2 million bpd in 2019 versus October 2018 levels to rein in an emerging fuel glut. The fuel surplus was in part depicted by light distillate fuel stocks at Asia\u2019s refining hub in Singapore climbing to a record 16.1 million barrels in early January.
\n\u201cIf OPEC is faithful to its agreed output cut together with non-OPEC partners, it would take 3-4 months to mop up the excess inventories,\u201d energy consultancy FGE said.
\nConsidering the planned cuts versus ongoing increases in US crude production, which hit a record 11.7 million bpd by late 2018, FGE said it expected Brent prices to range between $55-$60 per barrel in the first months of 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"
Sino-US trade war would lead to a global economic slowdown news desk SINGAPORE Oil prices edged up on Friday, shaking off previous losses after China said it would hold talks with the US government on January 7-8 to look for solutions to the trade disputes between the world\u2019s two biggest economies. International Brent crude futures […]<\/p>\n","protected":false},"author":2,"featured_media":43967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-43955","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\n