Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil prices slide as U.S.-China trade war escalates

Published 2019-08-23, 09:41 a/m
© Reuters.  Oil prices slide as U.S.-China trade war escalates
BNPP
-
LCO
-
CL
-
ROSN
-

* China unveils retaliatory tariffs on U.S. goods

* Investors await U.S. policy clues from Fed Chair's speech

By Bozorgmehr Sharafedin

LONDON, Aug 23 (Reuters) - Oil prices fell sharply on Friday after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods, marking the latest escalation of a protracted trade dispute between the world's two largest economies.

Brent crude futures LCOc1 , the international benchmark for oil prices, fell 88 cents to $59.04 a barrel by 1327 GMT.

U.S. West Texas Intermediate (WTI) crude futures CLc1 slid by $1.33 to $54.02.

"Policymakers and investors remain cognizant of the economic headwinds that are gathering force, given that the U.S.-China trade conflict threatens to drag on for longer," said FXTM market analyst Han Tan.

China's commerce ministry said it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including agricultural products such as soybeans, crude oil and small aircraft. attention was also focused on a speech by U.S. Federal Reserve chief Jerome Powell at a meeting of global central bankers at Jackson Hole, Wyoming, hoping for news on whether it will cut interest rates for a second time this year to boost the U.S. economy. St. Louis Federal Reserve Bank President James Bullard said policymakers will have a "robust debate" about cutting U.S. interest rates by half a percentage point at their next policy meeting in September. concern over the possibility of recession, U.S. manufacturing industries registered their first month of contraction in almost a decade. have blamed the hesitant tone (for oil prices) on an end-of-summer lull. Yet, in truth, the sense of unease stems from ongoing worries about the global economy," said Stephen Brennock of oil broker PVM.

Harry Tchilinguirian, of BNP Paribas (PA:BNPP), said the market had some other bearish data, noting a rise in Saudi Arabian oil exports while Russia's crude output moved above its quota under an OPEC+ agreement. He also pointed to Russian oil major Rosneft ROSN.MM helping to ship Venezuelan oil to China and India.

OPEC, Russia and other producers have, since Jan. 1, implemented a deal to cut output by 1.2 million barrels per day. The alliance, known as OPEC+, renewed the pact in July, extending the curbs to March 2020 to avoid a build-up of inventories that could hit prices.

Iran's foreign minister said talks held on Friday with French President Emmanuel Macron about a landmark 2015 nuclear deal were "productive". has said it will scale back compliance with the pact unless the Europeans find a solution enabling Tehran to sell its oil despite U.S. sanctions.

https://tmsnrt.rs/2NqdyFy

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.