Oil prices fall by 2% after the partial deal between the United States and China. The oil prices increased by 2.07% owing to the attacks on Iranian oil tankers near the Saudi Arabia coast.
The price of Brent crude oil decreased by 1.46 USD to settle at 59.05 USD. Last Friday, Washington and Beijing announced the partial deal and avoided the scheduled tariffs. But the existing tariffs remain the same and required more work to do for both parties.
The United States announcement to deploy more soldiers in Saudi Arabia partially responsible for the price drop.
On the other hand, Iranian officials are indirectly blaming Saudi for the attack on the oil-tanker and warn for consequences.
Though the partial trade deal was successful, there are many other unresolved issues. Issues such as intellectual property rights, industrial policy, and technology transfer remain unaddressed and can hurt the oil price.
A report also stated that the ongoing aggression of Turkey in Syria could affect the international crude oil price. Due to Turkey’s attack, the oil export potential of Iraq will further reduce. As a result, the crude oil price could again increase.