# Oil resumes steep drop as U.S.-China trade row raises demand worries - MarketWatch

> Oil futures resumed their decline as the U.S.-China trade dispute raised concerns about weaker global crude demand. The prior week, U.S. crude had its largest one-day drop in over four years after new U.S. tariffs on Chinese goods and Chinese retaliation pledges. China's yuan weakened below 7 per dollar, triggering a global selloff in risk assets and a flight into Treasurys.

- Date: 2019-08-05 · published 2019-08-05T12:00:00.000Z
- Category: trade · region US · magnitude medium
- Page: https://feedsoft.ai/events/12578-oil-resumes-steep-drop-as-u-s-china-trade-row-raises-demand-worries-marketwatch
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Escalating tariffs threaten trade flows and crude demand, pressuring energy prices. The weaker yuan and risk-off move can also shift currency-linked feed import costs and dampen commodity prices broadly.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2019-08-07 | 5 | -14.1% | -3.3 | Oil resumed its steep drop on Aug 5 as the trade dispute and weak yuan fueled a risk-asset selloff. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2018-04-03 | [MARKET WATCH: NYMEX, Brent crude prices drop on US-China trade tensions \| Oil & Gas Journal](https://feedsoft.ai/events/10844-market-watch-nymex-brent-crude-prices-drop-on-us-china-trade-tensions-oil-and.md) | +0.6% | +8.8% |
| WTI | 2019-05-29 | [Oil prices drop as trade war worries outweigh supply disruptions](https://feedsoft.ai/events/9886-oil-prices-drop-as-trade-war-worries-outweigh-supply-disruptions.md) | -9.3% | -2.2% |
| WTI | 2019-05-31 | [Oil Market: US oil falls 5.5% to $53.50 per barrel on fresh trade worries](https://feedsoft.ai/events/9885-oil-market-us-oil-falls-5-5-to-53-50-per-barrel-on-fresh-trade-worries.md) | -6.9% | +4.9% |
| WTI | 2019-05-24 | [MARKET WATCH: Oil prices tumble after US-China news \| Oil & Gas Journal](https://feedsoft.ai/events/9796-market-watch-oil-prices-tumble-after-us-china-news-oil-and-gas-journal.md) | -2.1% | -1.6% |
| WTI | 2019-06-03 | [Oil falls as trade worries mount, Saudi comments limit losses](https://feedsoft.ai/events/11307-oil-falls-as-trade-worries-mount-saudi-comments-limit-losses.md) | +0.9% | +9.0% |
| BRENT | 2018-04-03 | [MARKET WATCH: NYMEX, Brent crude prices drop on US-China trade tensions \| Oil & Gas Journal](https://feedsoft.ai/events/10844-market-watch-nymex-brent-crude-prices-drop-on-us-china-trade-tensions-oil-and.md) | +0.1% | +10.6% |
| BRENT | 2019-05-29 | [Oil prices drop as trade war worries outweigh supply disruptions](https://feedsoft.ai/events/9886-oil-prices-drop-as-trade-war-worries-outweigh-supply-disruptions.md) | -10.5% | -6.4% |
| BRENT | 2019-05-31 | [Oil Market: US oil falls 5.5% to $53.50 per barrel on fresh trade worries](https://feedsoft.ai/events/9885-oil-market-us-oil-falls-5-5-to-53-50-per-barrel-on-fresh-trade-worries.md) | -8.8% | -2.2% |

## Sources

- marketwatch.com: https://www.marketwatch.com/story/oil-resumes-steep-drop-as-us-china-trade-row-raises-demand-worries-2019-08-05

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.