Prices of oil stumbles on looming trade tension between U.S. and China

US equities

Prices of oil fall on Monday as investors and analysts’ concerns about the looming trade tension between the United States and China intensifies. The international benchmark: Brent crude futures were seen settling at $70.18 per barrel, which was down by 0.4% or 27 cents from their previous settlement.

The United States West Texas Intermediate crude traded at $65.49 per barrel, which was down by 0.6% or 39 cents from their last close. Both Brent and the U.S. WTI were seen accelerating in early trade on the day, with the international benchmark capping a high of $70.78 per barrel, it’s first $70 per barrel peak since January.

The sudden fall of oil prices on the day was due to the concerns over the looming trade war between the United States and China. Shanghai crude oil futures launched robustly, which gave investors and analysts’ the possibility of a massive trade war between the United States and China after U.S. President: Donald Trump signed a memorandum last week that could impose massive tariffs over Chinese goods imports, and the launching of the first yuan crude futures in Shanghai which is perceived by investors and analysts as a crude futures which seeks for great power over pricing and challenges benchmarks in Europe and the United States.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *