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Oil Declines on Recovering Saudi Supply, Trump’s Attack on China

Summary:
Futures for crude oil declined today. One of the major reasons for the decline were reports that Saudi Arabia is restoring its oil production faster than was estimated. Previously, crude rallied on news about an attack on Saudi oil facilities that shut down about 50% of the nation’s output. Experts estimated that it will take months to restore production but Saudi Arabia claimed it can do that much faster. And it looks like the country makes good on its promise. Market analysts pointed at another probable reason for the crude’s decline — the attack of US President Donald Trump on China during his speech at the United Nations General Assembly as well as his comments that he will not make a trade deal with China if he considers it a bad deal. Crude is often very sensitive to the risk

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Futures for crude oil declined today. One of the major reasons for the decline were reports that Saudi Arabia is restoring its oil production faster than was estimated. Previously, crude rallied on news about an attack on Saudi oil facilities that shut down about 50% of the nation’s output. Experts estimated that it will take months to restore production but Saudi Arabia claimed it can do that much faster. And it looks like the country makes good on its promise.

Market analysts pointed at another probable reason for the crude’s decline — the attack of US President Donald Trump on China during his speech at the United Nations General Assembly as well as his comments that he will not make a trade deal with China if he considers it a bad deal. Crude is often very sensitive to the risk sentiment, and the comments certainly hurt the sentiment. Many market participants thought that the remarks made it much less likely for a deal between the United States and China to happen in the near future.

November futures for delivery of WTI crude oil fell $0.78 (1.36%) to $56.51 per barrel as of 10:35 GMT on NYMEX today. Brent crude dropped $0.98 (1.55%) to $62.12 per barrel on ICE.

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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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