• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 14 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 4 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 10 mins The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 17 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 2 days Did China cherry-pick the factors that affected the economic slow-down?
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day Are you aware of Oil Price short videos on our energy topics?
  • 2 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 days NordStream2

Breaking News:

California Gasoline Prices Are Spiking

How Much Oil Can OPEC Realistically Add?

How Much Oil Can OPEC Realistically Add?

Years of underinvestment and shut…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Plunge As U.S.-China Trade War Escalates

Oil prices dipped early on Wednesday as the escalation of the trade dispute between the world’s two largest economies, the United States and China, was unable to offset strong Chinese oil import data and growing tension around Iran over the end of the U.S. sanction waivers.

As of 07:07 EDT on Wednesday, WTI Crude was down 2.31 percent at $60.81, while Brent Crude traded down 2.40 percent at $69.53 before the release of the weekly inventory report by the EIA.

Oil prices dipped on Tuesday after the American Petroleum Institute (API) reported a build in crude oil inventory of 2.81 million barrels for the week ending May 3, coming in over analyst expectations of a 744,000-barrel buildup in stockpiles. Including this week’s data, the net build is now 20.92 million barrels for the 19-week reporting period so far this year, using API data.

Further potential oil supply losses from Iran and Venezuela, however, are not enough these days to offset the sell-off in oil, after market participants turned their attention to the demand side of the equation.

Just a few days ago, the market was pricing in that the U.S. and China would soon sign a trade deal and avoid a major slowdown in global economy, which is typically a major hurdle to resilient oil demand growth.

Related: Trump’s Dangerous Oil Price Game

However, with two tweets on Sunday threatening new tariffs on China as of this Friday, U.S. President Donald Trump shattered market calmness and sent equity and commodity markets sharply lower as investors and traders started to panic over a possible significant global economic slowdown and pulled money out of riskier assets such as oil.  

According to an exclusive report by Reuters on Wednesday, President Trump’s Sunday tweets were actually a reaction to China reneging on almost all major points of a draft trade deal with the U.S., with Beijing backtracking on commitments to reforms and laws to meet U.S. complaints in intellectual property rights, competition policy, and trade secrets, among others.

The significant setback in trade talks outweighed bullish factors for oil such as China’s record crude oil imports in April, which could also be attributed to refiners rushing to buy oil from Iran before the end of the U.S. sanction waivers for all Iranian oil customers, including the biggest, China.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Stan Parks on July 02 2019 said:
    Thanks to capitalism, those lower prices will not show up at the pump!!

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News