Oil prices have fallen by 3%, in response to the Chinese response to the United States

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The sharp decline in world oil prices, which one day fell more than 3% and fell below $72 per barrel of Brent crude will affect
stock markets in Latin America.
In addition, the destabilizing effect on the markets in the region has and the escalation of the trade conflict between China and the United States. Previously, China has announced that August 23 will impose duties on the second list of American goods, imports of $16 billion per year. Increased duties will affect, in particular, cars, fuel, spare parts, medical equipment, and various types of waste, coal and gas.
World oil prices lately seem quite unpredictable, making sudden jumps that destabilizie the situation on the markets of Latin America. In the medium term, oil traders take into account risks such as the renewal of U.S. sanctions against Iran. The other day it was restored the action of the first package of US sanctions against the country. The second package of sanctions aimed at Iran’s energy sector and the oil deals must be put into action on 5 November.
Also, the negative impact on the global oil market provides statistics on fuel reserves in the United States. According to the U.S. Department of energy, for a week the oil reserves in the USA decreased by 1.4 million barrels, while experts expected reduction of 2.8 million barrels.
From the internal news of the region you can note the message that the Minister of oil of Venezuela, Manuel Quevedo rejected the possibility of sale of the assets of the state oil company PDVSA.
He also added that Venezuela guarantees the supply of oil while maintaining peace in the country. In addition, the Minister confirmed the volume of oil production by Venezuela in the amount of 1.5 million barrels.
Ivan Marchena,
GK Forex Club