Oil Set for Weekly Loss as Traders Weigh Trade War, #Saudi Output - Bloomberg

Oil Set for Weekly Loss as Traders Weigh Trade War, Saudi Output - Bloomberg:

Oil is poised for a second weekly loss as investors weigh the deteriorating U.S.-China trade dispute against the latest steps from Saudi Arabia to stabilize the market.

Brent crude rose 1.1% in London, but is down 6% for the week. The deepening spat between Beijing and Washington and a surprise gain in U.S. stockpiles helped drive prices to a seven-month low on Wednesday. The International Energy Agency on Friday called the demand outlook “fragile.” Saudi Arabia has responded to the rout with a plan to limit output and exports in September.

Brent has dropped into a bear market as growing fears that the trade spat will expand into a currency war overshadow the risk of supply disruptions in the Middle East. The IEA in its monthly report trimmed forecasts for oil-demand growth this year and next, and warned that it may lower the estimates further as the U.S.-China conflict drags on.

Brent for October settlement rose 64 cents to $58.02 a barrel on the ICE Futures Europe Exchange as of 8:46 a.m. in New York. The global benchmark crude traded at a $4.90 premium to West Texas Intermediate for the same month, having reached $4.75 on Thursday, the narrowest since July 2018.