MARKET WATCH: Oil futures down on fear of trade war progress reversal

Benchmark crude oil prices fell slightly Nov. 12 on markets in both London and New York on commentary related to ongoing US-China trade negotiations.

Oil markets have been “ultrasensitive to headlines pertaining to the progress on the US-China trade war,” Aegis reported Nov. 13. Aegis said early morning trades were down after US President Donald Trump “said the two countries were close to finalizing a trade deal but did not provide a date or venue for the signing of Phase 1,” citing a Reuters report.

Speaking at the Economic Club of New York Nov. 12, Trump said, “If we don’t make a deal, we’re going to substantially raise those tariffs,” Aegis quoted from a Bloomberg report.

The light, sweet crude contract for December on the New York Mercantile Exchange was down 6¢ to $56.80/bbl on Nov. 12. The January contract was down 5¢ to settle at $56.85/bbl.

Brent crude oil for January was down 12¢ to $62.06/bbl on London’s International Commodity Exchange. The February contract was down 6¢ to $61.24/bbl.

The NYMEX natural gas price for December lost a rounded 2¢ to $2.62/MMbtu. The January contract was down 1¢ to $2.71/MMbtu.

Ultralow-sulfur diesel for December decreased over a penny to a rounded $1.90/gal. The NYMEX reformulated gasoline blendstock for December was up less than 1¢ to remain $1.61/gal.

The gas oil contract for November was unchanged at $583.50/tonne on Nov. 12.

The Organization of Petroleum Exporting Countries’ basket of crudes for Nov. 12 was $62.82/bbl, up 56¢.