Friday saw oil markets continue their descent to lower territory, extending the streak of losses to four trading sessions. If this morning’s trading patterns hold, it looks like that streak might extend to five days. Crude oil is currently trading at $58.51, 53 cents (0.9%) below Friday’s close.
Fuel prices are trading slightly lower as well. Diesel prices are currently trading at $1.9187, down roughly a penny from Friday’s close. Gasoline prices are $1.6555, down 0.4 cents.
Last week saw oil prices decline 5% week-over-week, a resounding commentary on the market’s lack of interest in Middle East conflict. Neither the US nor Iran are looking to escalate tensions, keeping the situation in check for now. With Iran cooling off, the world turns now to US-China trade.
The Phase 1 deal is expected to be signed by both countries on Wednesday. Despite oil’s decline, equity markets are hovering near record highs as the deal goes into effect. Although the details of the agreement have not yet been announced, US Treasury Secretary Steve Mnuchin said yesterday that China has not altered their stance during the final negotiation and translation stages, a positive indicator that both parties are on the same page. Once markets see the trade deal, expect to see a quick reaction – though that could higher or lower depending on the details.