• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Shale Oil Fiasco
  • 7 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Might be Time for NG Producers to Find New Career
  • 9 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 4 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 11 hours Beijing Must Face Reality That Taiwan is Independent
  • 10 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019

A Double Dose Of Chaos For Oil Markets

rig

If you happened to be on vacation for the last week then we have good news- you didn’t miss much. Just the collapse of trade talks between the world’s two largest economies and a massive ramp in hostilities between two of the largest militaries in the Middle East. We entered May in a cozy bull run for risk assets. Two weeks later markets are collapsing and the White House is looking at proposals to send 120,000 troops to the Middle East to contain Iran. So it goes.

These two events may very well end up having just a modest impact on oil prices. They could also both end up shaping prices more than any other factor in 2019. Therefore, a quick recap is necessary.

On the trade front, the US and China appeared to be sailing towards a mutually acceptable deal in April which helped stock markets soar to or near all-time highs. Risk assets were pricing in a deal with near certainty which is why the recent devolution of relations has hit markets so hard. This all began last week with a Chinese effort to harden their stance on certain deal terms. The renegotiation was met with dismay from the US side resulting in fresh tariffs on more than $100b of goods and a threat of an additional 25% tariff on $300b more. China responded in turn with fresh tariffs of their own, and suddenly the near-certain deal feels highly uncertain. Both sides are beginning to acknowledge the spat will hurt the global economy and increase inflation at home. To salve the wounds, Beijing…




Oilprice - The No. 1 Source for Oil & Energy News