(12 JULY 2019)DAILY MARKET BRIEF 2:Oil prices are holding up

Oil prices have been facing a roller coaster lately. The threats from US President Donald Trump to raise tariffs on China and threatening Mexico with similar sanctions along with the rise of US oil inventories and record production volumes incentivized commodity traders to disinvest massively in crude oil. Yet it seems that the situation is turning as investors are considering Middle East tensions and Gulf of Mexico storm in addition to the successive drawdowns of US oil inventories. However, the longer-term view remains blurry, as global oil demand is likely to decline further amid decreasing manufacturing activity and possible escalation of US – EU trade discord.