Trade war impacts tumble oil prices amidst US‑China tension
Oil prices on the New York exchange are falling, influenced by the trade policy of US President Donald Trump. A slowdown in global economic growth means less demand for the resource, particularly in China, its largest importer.
Oil prices on the New York fuel exchange are showing declines. Analysts claim this is due to the global trade war led by US President Donald Trump. The conflict negatively impacts the demand outlook for energy.
A barrel of West Texas Intermediate (WTI) for June delivery currently costs $63.30, indicating a decrease of 1.21%. Meanwhile, Brent oil on the ICE exchange is priced at $65.02 per barrel, representing a decrease of 1.28%.
Trade tensions between the US and China
China's top diplomat, Wang Yi, warns other countries against succumbing to US pressure on tariffs. During the BRICS meeting in Brazil, the diplomat emphasized that concessions to the White House's tariff policy could embolden a "tyrant."
"The United States, which has long benefited greatly from free trade, is now going so far as to use tariffs as a bargaining chip to demand exorbitant prices from other countries," said Wang.
Weaker macroeconomic data are coming from the US economy, suggesting a potential decline in energy demand. Analysts at ANZ Group Holdings note that upcoming indicators might offer a clearer picture of the economic situation across the ocean.
Meanwhile, US Treasury Secretary Scott Bessent suggests the possibility of banning the export of certain goods to China, aiming to gain an advantage in negotiations over tariffs. China declares it does not intend to yield to pressure and enter into trade talks with Washington.
