The escalation of the trade war accentuates the decline in oil demand

Merrill Lynch, of the Bank of America, said Friday that the latest round of US tariffs on China could weaken global oil demand and push Beijing to retaliate by buying Iranian oil, which would lower the price of Brent crude from $ 20 to $ 30 per barrel. .

"World oil consumption is at its lowest level in almost 10 years," the bank's badysts said in a note. "Trade protection has severely affected global industrial activity".

"We believe that the latest round of US tariffs on China could weaken global oil demand by 250,000 to 500,000 barrels of oil a day."

China's decision to resume Iranian oil purchases could drive down oil prices, the bank said.

Brent futures rose about 3% above $ 62 a barrel on Friday, after falling more than 7% on Thursday.

The largest decline in more than three years after the decision of US President Donald Trump to impose additional customs duties on imports from China from September 1.

China announced Friday that it would take countermeasures.

The International Energy Agency (IEA) said last month that "at the end of the first quarter of 2020, net inventories could reach 136 million barrels", in the report. baduming that OPEC production would remain at the current level of about 30 million barrels a day.

"The widely followed decision, taken by OPEC ministers and beyond, to extend the production cut agreement until March 2020, provides direction, but does not change anything. the fundamental expectations of a booming market, "said the agency in its latest monthly report.