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Oil dropped on Friday, resulting in a weekly loss of more than 1% for the US benchmark, after China announced that it would impose retaliatory duties on imports from the United States for an amount of $ 75 billion, including a tax on crude, amplifying concerns about the global economy demand for prospects.
The rates themselves were not very surprising "given the intensification of the trade war that has occurred recently," said Marshall Steeves, energy market analyst at IHS Markit. . "However, the specific tax on US crude certainly has a direct impact on WTI."
October West Texas Intermediate Brut
CLV19, -2.49%
The New York Mercantile Exchange – the US benchmark – lost 1.18 dollars, or 2.1%, to settle at 54.17 dollars a barrel, suffering the worst of the sale after the list of rights China's customs includes a 5% tax on US oil imports. For the week, the contract for the first month recorded a loss of 1.2%, according to Dow Jones Market Data.
Lily: The price of oil could fall to the lowest of the year nearly 50 dollars a barrel
October Brent crude
BRNV19, -0.76%,
The global benchmark dropped 58 cents, or 1%, to $ 59.34 a barrel on ICE Futures Europe, but prices were still up 1.2% for the week.
In a series of tweets, President Donald Trump has threatened new actions against Beijing and said he "ordered" by this letter "to US companies to seek alternatives to China." This caused a massive selloff stocks and put pressure on the US dollar, while triggering strong demand for safe havens such as gold and US treasuries.
"Prices are rapidly reflecting the deterioration of US-China relations and the continuing impact on the global economy," said Matt Smith, Director of Commodity Research. at ClipperData. "It has been going on for months now and has a negative impact – and that means it will only continue."
The move also accompanies US crude exports to China this month, hitting their highest level in a year, with nearly 300,000 barrels a day. Several ships carrying US crude are expected to arrive in China, he said.
China's official Xinhua News Agency said a 10% and 5% tariff would come into effect on two $ 75 billion commodities on December 1 and 15.
According to reports, customs duties include an additional 5% tax on crude oil imports from next month.
"In my opinion, we were not expecting a 5% price on crude oil," said Stewart Glickman, energy analyst at CFRA Research. In addition, the slowdown in the Chinese economy is "bad news for emerging market oil demand, from which will come the bulk of additional demand in 2020".
Trump announced earlier this month its intention to increase tariffs on an additional $ 300 billion of Chinese imports on September 1, but postponed part of it until December 15.
Demand-side risks are high, as the trade war remains tense and after Federal Reserve Chairman Jerome Powell "failed to lead a vigorous easing campaign," he said. Edward Moya, Senior Market Analyst at Oanda.
In a speech at the Economic Policy Symposium in Jackson Hole, Wyoming, "Powell has left the door open for further stimulus, but we will not see it as fast as the markets are. had originally planned, "said Moya.
Lily: Powell says the Fed "is watching the situation closely" and "will act as it should"
"Crude will have a hard time surviving here, as significant risks to the global economy and a delayed US recovery will dampen demand forecasts," he added.
At the same time, weekly data on the number of oil rigs operating in the United States suggested a slowdown in production. Baker Hughes
BHGE, -2.57%
Friday, reported a decline of 16 in the number of domestic oil rigs to 754 this week. It was the biggest weekly decline since the end of April.
In other energy exchanges, the essence of September
RBU19, -1.53%
1.5% at $ 1.6428 per gallon, a weekly loss of about 0.9%, while September oil is
HOU19, -1.66%
lost 1.4% to $ 1.8156 a gallon, ending about 0.2% higher for the week.
Lily: Gasoline prices at the pump can still drop by 10% before the end of the year
Natural gas futures contracts in September
NGU19, -0.09%
paid almost a penny, or 0.3%, to $ 2.152 per million British thermal units, a weekly decrease of 2.2%.
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