Oil down with Chinese retaliatory stance against US

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NEW YORK/LONDON/DUBAI

Crude oil prices were down at trade opening on Friday due to China’s strong stance taken against the US in its talks of fighting back, and which resulted in the souring of trade tensions between the two countries. Chinese President Xi Jinping stated his country did not start the trade war, which he said it wants to work out with the U.S., but stressed that China could fight back. This [trade war] is not something we want … We want to work for a Phase 1 agreement on the basis of mutual respect and equality. We don’t want to start a trade war, but we are not afraid. When necessary we will fight back, but we have been working actively to try not to have a trade war, he said. The prolonged Sino-American trade war continues to lower confidence in global markets and has a knock on effect of threatening global investments. The lowering of global economic growth forecasts have negatively impacted overall oil consumption estimates for next year and put a downward pressure on crude prices.

International benchmark Brent crude was trading at $63.61 per barrel at 0700 GMT on Friday with a 0.08% decline after it closed Thursday at $63.66 a barrel. American benchmark West Texas Intermediate was at $58.16 a barrel at the same time for a 0.33% loss after ending the previous session at $58.35 per barrel.

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