Oil Prices Under Pressure Amid Escalating US-China Trade War.
West Texas Intermediate (WTI) crude settled at $58.43 per barrel, marking a 0.3% decline, while Brent crude closed at $68.82 per barrel, down by 13 cents. Both oil benchmarks had reached their highest levels earlier this year, but market sentiment remains fragile due to the escalating trade tensions.
Jeffrey Halley, a senior market analyst at OANDA in Singapore, noted that investor confidence is “vulnerable to any deterioration in US-China trade friction,” as reported by The Telegraph.
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Long-Term Impact on Oil Markets
The effects of the trade war extend beyond the immediate fluctuations in oil prices. Edward Bell, an analyst at Emirates NBD bank, highlighted that the long-term consequences of the conflict could significantly impact global energy demand.
“The impact of a trade war is a longer-term issue,” Bell explained, pointing to reduced industrial activity and weakened demand from major economies.
China, one of the world’s largest consumers of crude oil, has already seen a decline in industrial profits, further exacerbating concerns about a slowdown in energy demand. As trade negotiations remain uncertain, market analysts warn that oil prices could experience further volatility in the coming months.
