U.S. President Donald Trump is pledging to impose a 10% tariff on another $ 300 billion in Chinese goods shipped with a 7% crude decline the day before.
West Texas Intermediate crude futures traded from New York gained $ 1.22, or 2.3%, to $ 55.17 a barrel as of 6:46 AM ET, while crude futures Brent, a rapper for oil prices outside the US, rose 1.58 dollars, or 2.6%, to $ 62.08.
Oil prices plummeted Friday after its worst sell-off in three years.
Consequences of the conflict include data on Thursday that showed US manufacturing activity slipped to its lowest level in nearly three years last month, while construction costs fell in June as investments in private construction projects fell. at its lowest level in one and a half years.
A worsening US-China trade dispute increases the risk of a global economic slowdown that could adversely affect oil demand, especially as the conflict is between the world’s two largest oil consumers.
Although ING commodity strategists Warren Patterson and Wenyu Yao recognized the bearish implications for escalating trade tensions, they said they remained strong.
“We continue to maintain a constructive view on the back of supply cuts and Iranian sanctions, though the sensitivity is clearly a result of wider macro and trade concerns,” they said in a note.
These strategists showed Bloomberg estimates for OPEC production in July, which showed the lowest monthly output from the cartel since May 2014.
“These numbers continue to show that OPEC remains committed to bringing the market into balance, with Saudi Arabia leading the way,” they said.
Still ahead of the hearing, data on Baker Hughes’ weekly regiment count is due.
Last week’s data showed that US energy firms cut the number of oil fraudsters operating for a fourth week in a row since February 2018, against a backdrop of a slowdown. increasing US production.
In other energy trading, gasoline futures advanced 1.6% to $ 1,7775 a gallon from 6:48 AM ET, while heating oil gained 1.8% to $ 1,8869 a gallon.
Finally, futures for natural gas traded down 1.8% to $ 2,162 per million British thermal units./Investing.com