- WTI continues the downtrend from yesterday’s weakness.
- WTI trading near 42.00 dollars; bounces off intraday lows.
- The US-Canada tariff tensions, add to the China worries.
- Dollar pullback ahead of the US job numbers pushes commodities down.
WTI crude price is trading weak today after the US reimposed duties on Aluminium from Canada and President Trump signed an executive order banning any deal with the Chinese parent company of TikTok, in force after a window of 45 days.
The bearishness weighed further with the impasse in Congress over the passing of the new stimulus deal.
The crude price bounced off the intraday low and is trading near 42.07 dollars, down 0.10 Percent, continuing its weakness from Thursday.
The recalled tariffs gained immediate counter shot from Canada in raising duties. Such actions are considered bad for the global economy already struggling with the impact of the coronavirus led economic debacle.
Democrats and Republicans failed to find any breakthrough in their negotiations for the stimulus package, and this forced Senate Republican Leader Mitch McConnell to suggest extending the talks through the August vacations. Nevertheless, President Trump had already indicated using executive powers to roll out unemployment benefits.
China’s import data has left markets worried even after the huge surprise shown in the trade surplus front, in July. On the positive side, numbers from Japan and Germany helped oil to stage a pullback from lows.
Traders will be waiting for the US job numbers for July to gauge the US economic strength and in case of oil: Baker Hughes US Oil Rig Counts will be a vital release, the earlier reading at 180.
