US President Donald Trump said today that the first stage of the trade agreement concluded between his country and China last January is still in effect, which brought the recovery back to the markets after an earthquake caused by the statements of his commercial advisor Peter Navarro.
Trump's comments ended a debate in the past hours that Navarro raised, by telling US Fox News that the US-China trade deal had ended, before it could later retract.
Trump wrote a tweet on his official account on Twitter at dawn today, saying that his country hopes that China will continue to adhere to the terms of the agreement between the two countries recently.
Navarro, after Trump's tweet, only retracted his statement saying that he had been taken out of context, adding that the agreement was still in effect, which raised hopes in the markets.
Last January, Washington and Beijing signed the first phase of the trade agreement between them, in a move that raised hopes at the time to end trade tensions that affected the global economy, but the trade agreement hit some weakness, after US accusations to China of causing an outbreak of the Corona pandemic globally. , Unilateral Beijing decisions and interventions on Hong Kong.
The global economy was affected by trade tensions between the two countries, which Trump ignited in March 2018, when he called for a fair trade agreement that protects his country against the flow of imports from China.
Oil markets
Crude oil prices reduced early losses they had recorded, supported by Trump's contradictory statements to what his commercial adviser Navarro said about ending the trade agreement with China.
In the wake of Navarro's comments, oil prices suddenly retreated from their highest levels in 3.5 months. The decline also coincided with global fears of a second outbreak of the Corona virus, especially in China, the world's largest crude importer and second largest after the United States.
By 7:17 UTC, Brent crude futures for August delivery fell 0.58% to $ 42.81, before continuing the upward flight.
US West Texas Intermediate crude for August delivery futures fell 0.86% to $ 40.40 a barrel, before making some gains.
On Monday, crude prices jumped more than 2%, supported by shrinking crude supplies from two major producers, while the general isolation measures related to the Corona virus continue to be reduced despite a record increase in cases around the world.
Bank of America Global Research raised its forecast for Brent crude prices to $ 50 next year and $ 55 a barrel for 2022. For West Texas Intermediate, the bank expects average rates at $ 47 in 2021 and $ 50 in 2022.
And the oversupply faced by the OPEC Alliance, in front of a new challenge starting next month, with Saudi Arabia suspending a voluntary reduction of one million barrels per day, which began its implementation in early June and for a month.