Oil price tumbled after the negative rhetoric trump
Oil prices fell after US President Donald trump said that sharply increased tariffs on Chinese goods this week, risking to disrupt trade negotiations between the two largest economies in the world.
Futures oil brand West Texas Intermediate (WTI) in the US traded 60,60 USD per barrel, while futures for Brent oil fell below 71 dollars a barrel, trading at the level of 69.83 per barrel.
On Sunday, trump said on Twitter that this week will sharply raise tariffs on Chinese goods in the United States, bringing down the global financial markets including crude futures.
A sudden trump’s strict policy against Chinese tariffs has confused investors, who are trying to reduce their risks in the markets. The prospect that trump will blow months of trade negotiations, raised concerns about future oil demand.
After such aggression on the part of trump, China could cancel or at least reduce short trade negotiations scheduled with Washington this week.
In the oil industry, there are signs of further production growth in the United States, where oil production has increased by more than 2 million barrels per day since the beginning of 2018 to a record 12.3 million barrels per day. This made the United States the largest producer in the world, ahead of Russia and Saudi Arabia.
According to oil company Baker Hughes said Friday the number of rigs drilling for gas in the United States for the week to may 3, fell by 3 to 183, while rigs targeting oil increased by 2 to 807.
In the last week commercial crude oil inventories in the US are growing that some observers interpret as evidence that the world oil market at the moment is completely balanced.
But this story cannot explain the sharp lag the futures prices for international varieties such as Brent, which is usually associated with the market, which considerably remain.
In fact, commercial stocks in the United States during the year grew much less than usual, even despite the fact that refineries overhaul that otherwise would have led to an increase in reserves.
Refineries spend more maintenance than usual, to avoid stops in the fall and winter in anticipation of the introduction of new standards of marine fuels IMO Refineries the US is planning a major overhaul of the plant in the 2nd quarter.
Limited growth of commercial stocks of crude oil in the United States, despite the intense spring service, as a rule, confirms that the global market has narrowed significantly since the beginning of the year and will be even stronger in the second half.
Commercial oil inventories in the U.S. rose by nearly 30 million barrels to 26 April, compared with the end of last year, according to the latest weekly data from the energy information Administration of the United States.
“International financial center”