# Oil prices drop as trade war worries outweigh supply disruptions

> WTI settled down 0.6% at $58.81 a barrel on Wednesday after touching a session low of $56.88. China signaled it was ready to use its dominance in rare earths to retaliate in the US trade war, and equities fell.

- Date: 2019-05-29 · published 2019-05-29T12:00:00.000Z
- Category: trade · region China · magnitude medium
- Page: https://feedsoft.ai/events/9886-oil-prices-drop-as-trade-war-worries-outweigh-supply-disruptions
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Escalating US-China trade tensions threaten global oil demand and push investors out of risk assets. OPEC output cuts and Middle East tensions provided only partial support.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2019-05-30 | 1 | -4.5% | -4.2 | China's rare-earths retaliation threat and falling equities on May 29 added to trade-war pressure carried into May 30, though the move that day was small. |
| BRENT | 2019-06-03 | 5 | -10.4% | -2.9 | On May 29 trade war worries and a China rare-earths retaliation threat weighed on prices and equities despite supply disruptions. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2019-05-31 | [Oil Prices Slide on Trade Tensions and China Fears](https://feedsoft.ai/events/9884-oil-prices-slide-on-trade-tensions-and-china-fears.md) | -6.9% | +4.9% |
| WTI | 2019-06-03 | [Oil falls as trade fears offset expectations for prolonged supply cuts](https://feedsoft.ai/events/11308-oil-falls-as-trade-fears-offset-expectations-for-prolonged-supply-cuts.md) | +0.9% | +9.0% |
| WTI | 2019-08-05 | [Oil resumes steep drop as U.S.-China trade row raises demand worries - MarketWatch](https://feedsoft.ai/events/12578-oil-resumes-steep-drop-as-u-s-china-trade-row-raises-demand-worries-marketwatch.md) | -2.2% | -1.1% |
| 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 | 2019-05-31 | [Oil falls over 3% on fresh trade worries, posts biggest monthly drop in six months](https://feedsoft.ai/events/9883-oil-falls-over-3-on-fresh-trade-worries-posts-biggest-monthly-drop-in-six-months.md) | -6.9% | +4.9% |
| BRENT | 2019-05-31 | [Oil Prices Slide on Trade Tensions and China Fears](https://feedsoft.ai/events/9884-oil-prices-slide-on-trade-tensions-and-china-fears.md) | -8.8% | -2.2% |
| BRENT | 2019-06-03 | [Oil falls as trade fears offset expectations for prolonged supply cuts](https://feedsoft.ai/events/11308-oil-falls-as-trade-fears-offset-expectations-for-prolonged-supply-cuts.md) | -2.9% | +2.1% |
| BRENT | 2019-08-05 | [Oil resumes steep drop as U.S.-China trade row raises demand worries - MarketWatch](https://feedsoft.ai/events/12578-oil-resumes-steep-drop-as-u-s-china-trade-row-raises-demand-worries-marketwatch.md) | -5.8% | -1.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/05/29/oil-market-us-china-trade-war-opec-supply-cuts-in-focus.html

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