The global oil market continues to feel the tremors of escalating trade tensions between the United States and China, pushing oil prices further down this Monday. The fear of a looming recession exacerbates the situation.
Key Insights
- Brent crude plunged by $35, or 3.58%, at $63.23 per barrel early Monday.
- West Texas Intermediate (WTI) saw a decrease of $2.31, or 3.73%, landing at $59.68 per barrel.
- Last week, Brent and WTI lost 10.9% and 10.6%, respectively.
The Story Behind The Numbers
Recent measures by China, including tariffs on U.S. imports, highlight a retaliatory stance against the U.S. administration, intensifying the ongoing economic skirmish. Notably, oil imports are exempt from the latest tariffs; however, the larger narrative of increased trade barriers could catalyze inflation, decelerate global economic growth, and further drive volatility in oil prices.
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In Their Words
Vandana Hari of Vanda Insights reflected, “It’s tricky to pinpoint a bottom price for crude oil amid market panic unless the trade tensions ease, which seems unlikely without a significant diplomatic gesture from the U.S.”
