TOKYO (Reuters) – Oil on Friday recovered some of the losses from the previous session when prices fell most in a month, although worries that emerging market crises and trade disputes could affect demand are still dragging.
Oil barrels are shown on the site of the Canadian Vermilion Energy group in Parentis-en-Born, France, 13 October 2017. REUTERS / Regis Duvignau
Brent's crude oil rose 23 cents (0.3 percent), at $ 78.41 a barrel of 0122 GMT, after a 2 percent drop on Thursday. The global benchmark from the day before rose to the highest since May 22 at $ 80.13 a barrel.
American light oil rose by 27 cents or 0.4 percent with 68.86, after falling 2.5 percent on Thursday.
The International Energy Agency warned Thursday that although the oil market was tightening at the moment and the demand for oil in the next three months would reach 100 million barrels per day (BPD), global economic risks were increasing.
"As we move forward in 2019, there is a potential risk to our forecast in some major emerging economies, partly due to currency devaluations against the US dollar, which increases the cost of imported energy," the agency said.
"In addition, there is a risk of growth due to an escalation of trade disputes," said the Paris-based agency.
China will not stick to the demands of the US in trade talks, the big state-run China Daily newspaper said Friday in an editorial after Chinese officials received an invitation from Washington for a new round of talks.
US President Trump said Thursday on Twitter that the United States has the upper hand in talks.
"We are not under pressure to make a deal with China, they are under pressure to make a deal with us," Trump testified.
US companies in China are being hurt by increasing tensions between Washington and Beijing, according to a survey that is encouraging American lobbies to encourage the Trump administration to reconsider its approach.
Reporting by Aaron Sheldrick; Edited by Joseph Radford