Trade tensions trigger dip in US oil prices amid global slowdown
Oil prices on the New York exchange are declining. This is influenced by the trade policy of US President Donald Trump. A slowdown in global economic growth implies reduced demand for the resource, notably in China, its largest importer.
Oil prices on the New York fuel exchange are recording decreases, which—according to analysts—is the result of the global trade war instigated 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 regarding tariffs. During the BRICS countries meeting in Brazil, the diplomat emphasised that concessions to the White House's tariff policy could only 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.
Softer macroeconomic data is emerging from the US economy, which might suggest a potential decline in energy demand. Analysts at ANZ Group Holdings in their market note indicate that upcoming indicators could provide a clearer view of the economic situation across the Atlantic.
Meanwhile, US Treasury Secretary Scott Bessent has suggested the possibility of banning the export of certain goods to China, aiming to gain leverage in negotiations over tariffs. China has announced that it does not intend to succumb to pressure and enter into trade talks with Washington.
