Crude oil prices fell slightly Tuesday, with Brent crude remaining near seven-month lows just below $60 a barrel due to growing trade tensions between China and the U.S., Kallanish Energy reports
President Trump is vowing to impose new tariffs on Chinese imports, and China is retaliating by making further moves against U.S. agricultural purchases.
The U.S. also responded to a decline in China’s yuan currency Monday by branding China a currency manipulator, with Beijing then accusing the U.S. of causing chaos in financial markets.
International benchmark Brent futures fell 58 cents, to $59.23 a barrel by 2:25 p.m. EDT, having fallen earlier in the trading session to their lowest since Jan. 14, at $59.07/Bbl.
West Texas Intermediate futures were down 78 cents Tuesday, to $53.92/Bbl.
Global equities hit a two-month low and Brent fell more than 3% Monday, as traders worried the dispute between the world’s two biggest oil buyers would lower demand.
On the supply side, Iran has threatened to block all energy exports out of the Strait of Hormuz, through which 20% of global oil traffic passes, if it’s unable to sell oil as promised by a 2015 nuclear deal in exchange for curbing uranium enrichment.
Great Britain Monday joined the U.S. in a maritime security mission in the Persian Gulf to protect merchant vessels after Iran seized a British-flagged vessel.
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