The oil feels threatened trade wars between the US and China

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On futures oil contracts pushing the investors concerns. WTI moved above $61,90 per barrel, while Brent was fixed at $71,57. We will remind that on Friday it became known more intense the conflict between the US and China. So, America imposed tariffs on Chinese products, the amount of which totaled $200 billion And on Sunday, the US have requested confirmation of changes in the legislation of China. Of course, Beijing will not go to the detriment of their interests, and informed other side.
In the first quarter of this year the share of the two countries accounted for 34% of global oil consumption. If the war escalates, it is likely that this will limit the rise in oil prices. Therefore, market participants will pay close attention retaliatory steps China.
Last week, the American energy company has reduced the number of oil rigs to 805. The majority of large participants of the oil market will be watching an upcoming OPEC meeting+ in Vienna on June 25-26. OPEC+ will have once again to take measures to regulate the global oil market.
The impact of geopolitical events in the oil market threatens supplies importing countries. It is worth noting that the how to import and export the most comfortable is the range of $70-75 per barrel.
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Gaidar Hasanov
Expert
“International financial center”