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WTI fell below $60 per barrel for the first time in two months, driven by fears of a global economic slowdown. Top US and Chinese officials adopted more nationalistic rhetoric, and the US had raised tariffs on Chinese goods and taken a hardline stance on Huawei.
Analysts expect the trade conflict to be protracted.
A protracted tariff dispute between the US and China dampens expected global oil demand and pressures crude prices lower. Weaker energy costs also reduce biofuel margins that support grain and oilseed demand.
oilprice.comNick CunninghamMay 23, 2019After 80 past bearish trade events, Crude Oil (WTI) moved a median -2.2% over 5 sessions (30% higher; middle half -6.9% to +0.8%), and -1.5% over 20.
After 56 past bearish trade events, Crude Oil (Brent) moved a median -5.6% over 5 sessions (20% higher; middle half -9.0% to -1.7%), and -4.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Explains the sentiment shift as US-China rhetoric hardened and slowdown fears pushed oil below $60.
Global slowdown fears from hardening US-China rhetoric pushed WTI below $60.
