Tensions between the United States and China have plummeted oil prices

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The growing tension
between the United States and China and Beijing’s refusal to set a target for its economic growth
year lowered oil prices by more than 5% today. This raised doubts in
the rate of recovery of demand for the second largest user
of oil in the world – China, reports
Reuters.

At 14:15 Bulgarian time
time European oil grade Brent fell 4.74% to 34.34 dollars
barrel, and light American crude oil (WTI) – by 5.72% to $ 31.98 per barrel. By
during the session their prices decreased by up to 7.7%.

After
continued rise in oil prices, markets were disappointed with the decision
of China not to set a goal for economic growth this year. Parallel with
the Asian country has stated that it is ready to adopt new legislation for the national one
security of Hong Kong, disobeying the warning from the President of the United States
Donald Trump for “a strong negative reaction from Washington to this bill.”
Such legislation could increase tensions between Beijing and
Washington, whose relations are already strained by trade disputes and reciprocal
accusations of the development of the pandemic.

“Investors
they must once again face an escalating verbal war between the United States and
China. The coronavirus has reversed a decade of global growth in oil demand
and recovery will be slow, “said Stephen Brenock of the oil company
PVM broker.

Sort of Brent
lowered in late March and early April to a 21-year low, and May
futures on
WTI fell to -37
dollars per barrel, i.e. investors paid to sell their oil. The reason
– the flooding of the market did not leave much room for its storage.
Since then, there has been an increase in demand for fuel, and supply has been
reduced after the historic reduction in production by OPEC +. Due
of this, the two types of oil doubled in price despite the morning drop
they are on the verge of recording a fourth consecutive week of growth in their prices.

Export data
from oil-producing countries suggest that OPEC + has already begun to
executes a deal that officially took effect on May 1. As a sign of empathy
US crude stocks fell surprisingly last week. Signs of
The increase in demand for fuel is not lacking, as even some airlines
plan to resume flights in Europe soon, which means more
search for jet fuel.

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Tags: oil | oil prices cheaper oil coronavirus tensions between the United States and China





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