U.S. Investigates Attack on Saudi Oil Facilities
December 20th, 2019
The energy market has been supported by the US and China phase one trade deal and the larger production cuts by OPEC. Also, yesterday’s draw on crude stocks was another point of support for energy prices. These factors continue to support and push prices higher. Today is likely to see a little bit of profit taking by traders as we come to the end of a week that has seen prices trade higher. This is also the last trading day before next week’s Holiday shortened trading week with Christmas stuck right in the middle.
Gross domestic product increased at a 2.1% annualized rate, the Commerce Department said in its third estimate of third-quarter GDP.
China’s Finance Ministry published a new list of six products from the US that will be exempt from tariffs starting on December 26th. The Finance Ministry said the exemption will be effective until December 25, 2020. It did not elaborate on why it chose the products or the approximate value of these goods.
A United States report on the evidence and analysis of weapons debris from the attack on Saudi Arabian oil facilities on September 14th indicated the attack came from the north. The report also stated that the drones that were part of the attack are similar to drones produced by Iran. The assumption continues to be that Iran was involved and that will keep the sanctions on Iran oil with little likelihood that changes any time soon.
The House of Representatives approved the US-Mexico-Canada (USMCA) free trade agreement and the Senate is expected to do the same early next year.