Brent crude oil at the end of trading session on Monday added $ 0.35, or 0.6%, recovering to $ 58.28 per barrel. In early trading support prices had hopes for the resumption of trade talks between the US and China. On the eve of Trump announced that representatives of the United States took calls from the Chinese negotiators, during which agreed to continue the dialogue. However, the optimism did not last long on the market, because China has officially denied the information that the telephone conversations between the two countries.
Previously, the main cause of the deterioration in market sentiment was the Chinese decision to introduce from September 1, tariffs on American imports worth $ 75 billion. In response, the US also announced higher tariffs on Chinese imports worth $ 500 billion, which will come into effect on 1 October. According to the forecast of investment bank Morgan Stanley, if the US and China will fulfill its promises and will unleash a new tariff war, the global economy will fall into recession in the long term of 6-9 months.
In this scenario, the most vulnerable will be the global manufacturing industry, recession which will inevitably be reflected in the fall in the demand for hydrocarbons. It is worth mentioning about the likelihood of such a development, we have warned repeatedly, recommend keeping "short" positions in all commodity assets, the value of which depends on the state of the world economy. Having said that, the nearest target for Brent benchmark is support at $ 55 per barrel.
Brent SellStop 58,20 TP 55,1 0 SL 58,70
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets. Traders community is not responsible for any losses in the case of the review of materials
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