Oil prices are in the red amid worries about a trade war

Oil prices continue to decline on Tuesday, as concerns over slowing demand outweighed optimism after reaching an OPEC + agreement to increase production cuts in early 2020.

Futures for Brent fell to $63.80 per barrel, and futures for US light oil WTI – to $58.65 per barrel. Experts note that the euphoria over the decline in oil production was short-lived, and an unexpected drop in exports from China underlined the effects of the trade conflict. Exports from China in November fell by 1.1% year on year, while analysts had expected growth by 1%.

Moreover, since the start of the OPEC agreement to reduce oil production, the United States has been able to increase production by 4 million barrels per day. Members of the organization understand that the United States can either completely push them out of the market, or OPEC countries will have to increase production, which will immediately bring down the oil market.