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Oil prices went down again on Monday, 14 April, as the trade war between the US and China intensified. Investors are concerned that the new duties could weaken global economic growth and reduce energy demand. This is reported by Reuters.
Brent futures fell to $64.47/barrel (-0.45%) and WTI to $61.23 (-0.44%). Since the beginning of April, both benchmarks have lost $10/bbl each.
The economic signals from China are disappointing: consumer prices have been falling for the second month in a row, and production prices have plummeted by 30%. Moody’s experts say that Beijing’s economy is not ready for a protracted conflict.
In response to Trump’s new tariffs, China has raised duties on US goods by up to 125%. Trump, in turn, threatened new tariffs on critical technologies, including semiconductors.
Market reaction: US energy companies cut oil production – the number of active drilling rigs declined for the third week in a row, according to Baker Hughes.
The only potential factor supporting oil prices could be a possible suspension of oil exports from Iran, as stated by the US Secretary of Energy. Meanwhile, Washington and Tehran held constructive talks in Oman and plan to continue their dialogue next week.
