The earlier gains in oil had been erased as it traded lower on the morning of Thursday after weak data from the Chinese industry and the pessimism in the trade talks between US and China which picked up again and added to the rise in the United States Oil inventories as they weighed on prices.
On Thursday, the WTI crude had been down by 1.69 percent at a $ 54.13 along with Brent Crude traded by 1.18 % below at $59.53.
Oil prices, on Wednesday had come under pressure after it had been reported that a crude oil inventory which cost 5.7 million barrels for a week till 25th October. Analysts had put their expectations at a smaller build of about 729,000 barrels for the previous week after a consecutive string of inventory builds for five weeks had been interrupted by a draw of 1.7 million barrels. The five week string had added over 19 million barrels to the commercial crude oil inventories in the United States.
On Thursday, the prices of oil had wiped off quickly the early gains after it was reported by China about the six months of low factory activity. The PMI (purchasing managers’ index of China had seen a drop in comparison to the expectations which were that it was going to stay the same as it was in September. This has led to the fears that the economic growth in China is going to weaken further particularly without a trade deal between United States and China.
Pessimism regarding the trade war on Thursday had reigned supreme after it had been reported that the officials from China had signalled the doubts about the trade deal between United States and China.
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