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Overall risk aversion caused by fears of the effects of a trade war between China and the United States shifted yesterday with greater force on oil prices.
The benchmark oil in New York, the WTI, closed the session at 70.38 dollars a barrel, after recording a decrease of 5.03 percent. Meanwhile, Brent fell 6.92% on the London Stock Exchange to 73.40 dollars a barrel
. These movements came after the increased trade tensions promoted by President Donald Trump, which strengthened his position protectionist by mentioning that it would include 10% tariffs to Chinese goods for an amount close to 200 billion dollars.
"The escalation of the trade war between the two powers is definitely a source of risk for risky assets and commodities," he said. Bloomberg Mike Wittner responsible for oil market research for Société Générale . "The demand for oil in the world is in good health right now, but that is the risk that it will lead to some sort of economic downturn and, if that happens, the demand for oil will suffer."
The trade dispute positive data eclipsed for the oil industry. The weekly energy sector report from the Energy Information Administration (EIA) noted that crude inventories in the United States declined by 12.6 million barrels during the week ending on July 6th. This was the largest decline in inventories in half a decade, which showed signs of strong demand.
Another factor that has also lowered oil has been the announcement that Libya will resume its crude oil exports to its ports. 19659007] "Production and exports will return to normal levels in a few hours," said National Oil, the country's largest company, yesterday.
The mix of Mexican exports also suffered, since it dropped five times yesterday.
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Tensions over the past few days between the United States and China have threatened to affect global demand for energy.
Reports that Libya Reopens Terminals
The mitigating factor of the day was that stocks in the United States during the week experienced the largest decline in two years
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The stock markets have not escaped the sell-off. The S & P 500 recorded its biggest drop yesterday in two weeks after stocks of energy and materials producers lost at least two percent. Caterpillar and Chevron led the losses in the Dow Jones Industrial Average, while emerging market equities saw the largest decline since the end of June.
On the other hand, the dollar posted the strongest appreciation in a month, while the Japanese yen and the Chinese yuan weakened. "We imposed tariffs last night after the close and markets around the world were simply shipwrecked," said George Maris, co-director of equities at Janus Henderson. interview with Bloomberg in New York.
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