WTI Crude Oil Weakens as US-China Trade Tensions Threaten to Flare Up Again
Arslan Butt • 1 min read
WTI crude oil continues to trade bearish after losing more than 1% during the previous session as trade tensions between the US and China resurfaced and heightened weak demand concerns all over again. At the time of writing, WTI crude oil is trading at around $53.46 per barrel.
Mixed messages from the US on when the phase one trade deal will be signed with China have boosted worries that the trade war may not be coming to an end anytime soon. While President Donald Trump has repeatedly expressed optimism that the trade deal could be signed next month at the APEC summit, US Commerce Secretary Wilbur Ross remarked on Monday that this need not be the case.
Even amid ongoing negotiations, trade tensions between the US and China flared up once again after China approached the WTO to impose retaliatory sanctions on the US for a case dating back to Obama’s rule. China wants $2.4 billion in retaliatory sanctions against the US as it failed to comply with a WTO ruling on a tariffs case from a few years ago.
Crude oil has also been trading under pressure after Russia admitted that it was unable to meet the supply reduction commitment set by OPEC and its allies. Natural gas condensate output climbed higher in Russia during September in preparation of the upcoming winter season, causing Russia’s failure to support OPEC+’s decision for a 1.2 million bpd curb in crude production.