Commodities News

Oil Soars Around $60 As Sino-US Trade Conflict Weigh

Oil bounced slightly on Tuesday from huge falls in recent sessions; however, Brent crude stayed close to eight-month lows around $60 a barrel because of heightening trade strains between China and the United States.

Brent has lost over 9% in the prior week, with U.S. President Donald Trump declaring to impose new tariffs on Chinese items, and China making further strikes against U.S. agricultural freight.

The US responded to a drop in China’s yuan on Monday by branding the nation a currency manipulator.

Worldwide benchmark Brent futures LCOc1 have been up 28 cents at $60.09 a barrel by 0910 GMT, having dipped earlier within the session to their lowest since Jan. 14 at $59.07.

West Texas Intermediate crude CLc1 futures surged 38 cents to $55.07 a barrel.

With global equities hitting a two-month low on Monday, Brent dropped over 3% that day as traders feared the conflict between the world’s two biggest oil patrons would depress demand, helping to indicate Tuesday’s short-covering.

In the meantime, Iran has threatened to dam all energy exports out of the Strait of Hormuz, via which a fifth of worldwide oil traffic passes, if it is unable to sell oil as guaranteed by a 2015 nuclear treaty in trade for controlling uranium enrichment.

Britain on Monday joined the USA in a maritime security mission in the Gulf to guard merchant ships after Iran captured a British-flagged tanker.

Oil prices could get some support later on Tuesday, with a poll exhibiting U.S. crude oil inventories were anticipated to have dropped for a straight eight weeks.

The American Petroleum Institute is set to reveal its weekly inventory information at 2030 GMT, with official government figures to follow on Wednesday.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.

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