CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Oil prices continue to fall further amid rising US-China tensions

Oil continues to trade lower as the week draws to a close, with prices unlikely to break $40 a barrel in 2020 amid rising US-China tensions.

Oil clawed back some of its early losses on Friday morning, with prices unlikely to tick above $40 a barrel, according to market analysts.

In a recent survey by Reuters, analysts’ consensus data showed that Brent crude and the US benchmark West Texas Intermediate (WTI) would average at $37.58 and $32.78 a barrel this year.

Investors were hoping that production cuts from OPEC+ and the US would help lift prices amid weakening global demand due to the Covid-19 crisis. But analysts remain wary about the economic fallout from rising tensions between the US and China.

The world’s two largest economies have seen relations sour over China’s new security laws on Hong Kong, which has put a stop to a recent recovery in equities and oil prices.

WTI remains in tight range

Over the past week the WTI price has continued to move sideways, dropping down to $31.50 before rebounding towards $35, according to Chris Beauchamp, chief analyst at IG.

‘So far this range shows no signs of ending. A move through $35 marks the continuation of the rally from the April lows, while a push below $31.50 opens the way to more downside, towards previous resistance at $27.60 in the first instance,’ he added.

Stocks recovery runs out of steam

Global equities ran out of steam on Friday, as investors grow increasingly concerned about rising tensions between officials in Washington and Beijing.

The FTSE 100 looked like it would end the week on a high note, only to sees its earlier gains almost entirely eroded on Friday, with the blue-chip index closing 2% lower and only marginally higher to where it kicked off the week.

European socks also took a tumble, with the Euro Stoxx 50 closing 1.35% lower – though the index managed to rally to a 4% gain overall this week.

Meanwhile the S&P 500 also opened lower, with the index likely to end the week in positive territory despite the shift in investor sentiment.

How to trade commodities with IG

Looking to trade oil and other commodities? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account

  2. Enter ‘Oil – Brent Crude’ in the search bar and select it

  3. Choose your position size

  4. Click on ‘buy’ or ‘sell’ in the deal ticket

  5. Confirm the trade


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

React to volatility on commodity markets

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

See opportunity on a commodity?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a commodity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Analyse and deal seamlessly on fast, intuitive charts
  • Get spreads from just 0.3 points on Spot Gold
  • See and react to breaking news in-platform

See opportunity on a commodity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.