The US trade conflict with China let a trader gain 437K USD


Saint Vincent And The Grenadines – 08-16-2019 — In July-August, the global oil market was significantly influenced by the development of the trade conflict between the US and China. Although there were hopes that the problems in this area could still be fixed (the next round of negotiations between the parties), it is now very apparent that the conflict is still very far from being resolved.

The boiling point was the statements made by US President Donald Trump, saying that the US will introduce new import duties on goods from China in the amount of 300 billion USD from September 1. In response, China began to weaken the yuan, which was recognized as a manipulation. Later, the representative of the United States announced that the country would postpone the introduction of duties until December  
15. The US and China trade problems have a negative impact on the dynamics of oil prices, as market participants fear that this conflict will negatively affect the pace of development of the world economy and, in particular, will lead to a reduction in demand for raw materials. This decline allowed a Libertex trader to earn 437,000 USD profit on just selling the Brent, WTI and Light Sweet Crude Oil contracts. 
A positive signal for the market, which raised the price of a barrel of Brent oil in August above the $60 mark, is Saudi Arabia’s plan to reduce oil production in September, compared to August. In addition, the country plans to keep exports of raw materials below the 7 million-barrel mark. Another important event was the forecast of the US Department of energy, according to which the production of shale oil in the country in September will increase by 85 thousand barrels compared to August, reaching 8.8 million barrels per day. Now, market participants are waiting for the meeting of the Ministerial monitoring Committee of OPEC+ on September 12 in Abu Dhabi, which will consider the situation in the oil market. With the improvement of the trading situation, as well as in the case of the extension of the OPEC agreement, it can be expected that oil will reach a price of $70 per barrel of Brent. On the international currency market, there is still a demand for more reliable currencies due to geopolitical uncertainty. Despite some steps taken by China and the US towards each other, market participants do not expect an early resolution of the trade conflict. In addition to trade problems, other risk factors have accumulated in the market in recent months: protests in Hong Kong, the approaching Brexit, which is likely to take place without a deal, and the situation around Iran. Investors are now waiting for the Fed meeting in September, at which the base interest rate will be expected to be reduced due to concerns about the trade conflict. However, it is possible that with the improvement of relations between the US and China, it will be reduced less than expected by the markets. In this case, we can expect the dynamics of the EUR/USD pair to be at a level of 1.1 USD per EUR. This dynamic can provide traders with good opportunities to close their deals with profit. Don’t waste your time! Register at Libertexand use these opportunities! 

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