Oil prices rebound amidst U.S.-China trade tensions
On the New York fuel exchange, oil prices on Tuesday are rebounding from a four-year low. Technical indicators suggest that the earlier declines were overstated, according to brokers. Prices had dipped following announcements of increased crude supplies by countries in the OPEC+ cartel.
Oil prices on the New York fuel exchange are starting to rise after hitting a four-year low. A barrel of West Texas Intermediate for June delivery currently costs $58.03, marking an increase of 1.58%.
Meanwhile, Brent crude on the ICE exchange for July delivery is priced at $61.19 per barrel, an increase of 1.59% after an earlier decline of nearly 10%.
U.S.-China trade war
At the beginning of the week, oil prices on world markets fell when the OPEC+ alliance countries decided to increase oil supplies by 65,000 cubic metres per day in June. Saudi Arabia, the leader of OPEC+, also warned about the possibility of further supply increases.
The rise in oil prices is happening against the backdrop of the trade war between the U.S. and China, which affects global oil demand. Specifically, it reduces demand, and consequently, the price of the resource as well.
Meanwhile, U.S. President Donald Trump expressed readiness to lower tariffs on Chinese goods, which are currently 145%. China responded with tariffs at 125%.
In an interview with NBC, Trump stated that he intends to lower the tariffs at some point, explaining that without such a move, doing business with China would be impossible—and noting that China is eager to engage in trade.
China is grappling with economic challenges, as confirmed by data on factory activity, which is at its weakest since 2023. New export orders fell to their lowest level since December 2022, recording the biggest drop in three years, when China was under a pandemic lockdown.
