Oil prices increase one percent after a strong seloff with US rates

Oil prices have increased by more than one percent Tuesday, rebounding after a heavy fainting in recent sessions led by the concerns that the US rates could depress the demand and lead to a global recession.

Futures Brent increased by 81 cents, or 1.26%, at $ 65.02 per barrel, while the future on the intermediate crude of the western Texas of the United States increased by 92 cents, or 1.52%, at $ 61.61 to 0051 GMT.

On Monday, oil prices slipped by 2%, close to a minimum of four years, due to the fears that the latest commercial rates of the President of the United States Donald Trump could push global economies in the recession and decrease the demand for energy. Mercati, however, anticipate a potential limit to the lower trajectory of oil prices.

Trump claims that rates – a minimum of 10% for all US imports, with targeted rates up to 50% – would facilitate the awakening of the United States industrial base, which according to him has decreased due to decades of commercial liberalization.

While many countries are looking for an exemption or at least a reduction in rates, some, including China, the second largest world economy in the world after the United States, have announced plans for mutual rates. Trump said he would import even more rates to China if Beijing did not withdraw his countermeasures.

“If China resist, the total tariff rate on its imports in the United States would rise to a surprising 104%, a move that could trigger a further harsh of feeling at risk, said a strong drop in global equity markets and will accelerate the rhythm of the descent of the global economy in the recession”, said Tony Sycamore, market analysis, in a note.

A preliminary survey of Reuters showed on Monday that the crude oil of the United States and distilled inventories should have increased on average last week by about 1.6 million barrels, in another sign of the market waiting for the demand to be weak.

Since analysts estimate the tie costs for the production of oil in the United States, the main world oil producer, for about $ 60 per barrel, there may be a floor on how low prices could go as some choose to cut investments and perforations.

Oil slipped 3% on Monday at its weakest level in four years.

“This would cause the growth of the growth of production and the US production drops from the current level of 13.4 million barrels per day if the prices remain depressed, as it seems likely. The reduced activity, however, will support a price plan in the $ 50 per barile per wti,” Eurasia Group said in a note. [Reuters]