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Oil prices plunged Thursday, joining global equity sales, as escalating trade war between the two countries was again in the spotlight, slowing growth prospects for economic demand and oil one day after the EIA announced further increases in US crude inventories.
WTI crude plunged $ 60 a barrel for the first time since the end of March and Brent crude oil prices fell below $ 70 per barrel for the first time since early April.
On Thursday, at 11:25 EDT, WTI crude plunged more than 5% – from 5.26% to $ 58.19, while Brent Crude tumbled 4.45% to $ 67.83.
WTI and Brent are both on the verge of their worst daily and weekly fall in six months.
The oil and stock markets were hard hit Thursday by the increased tension in the US-China trade war, which worries more and more investors about the state of the global economy and, by extension, the prospects for growth in global oil demand the year.
After weeks of unsuccessful negotiations and new tariffs and retaliatory measures that the world's two largest economies are slapping, China said today that talks on the settlement of the trade dispute could not resume until the United States United would not have resolved their "wrong actions".
"If the United States wants to continue negotiating, they should, in all sincerity, adjust their bad actions. Only then can the talks continue, "Gao Feng, spokesman for the Chinese Ministry of Commerce, told CNBC on Thursday.
The May US manufacturing sector growth figure, which had the slowest pace of growth in almost a decade, further weakened market sentiment and the Dow dropped nearly 400 points.
Oil prices were disrupted by the unclear outlook for the global economy and oil demand, in addition to the declining inventory report of the EIA, which indicated an accumulation of 4.7 million barrels of crude oil at during the week preceding May 17th.
By Tsvetana Paraskova for Oilprice.com
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