• 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
  • 9 hours Shale Oil Fiasco
  • 2 hours Might be Time for NG Producers to Find New Career
  • 1 hour Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 10 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 6 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day Wind Turbine Blades Not Recyclable
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 1 day Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 hour Indonesia Stands Up to China. Will Japan Help?
  • 1 day Denmark gets 47% of its electricity from wind in 2019
  • 9 hours US Shale: Technology

‘No Trade Deal’ Scenario Keeps A Hard Cap On Oil Prices

rig

Recent financial market headlines have been dominated by stories covering the plunge in global interest rates. And for good reason. Government bond yields have been sinking like a stone lead by a move in the US 10yr yield down to 2.1% for an 18-month low. Meanwhile, in overnight markets, the 3-month LIBOR has dropped from 2.8% in December to 2.5% this week. So why are investors flocking to bonds? Simple- heated rhetoric between Washington and Beijing is making a US/China trade pact seem less and less likely every day and raising concerns that elevated tariffs could trigger a global recession.

Concern that the two sides are only moving farther from a deal is justified. Rhetoric from the Trump administration is taking a hard line, no compromise attitude towards the negotiations which could be difficult to reverse. In Beijing, President Xi is now using the tougher US stance to generate nationalist support arguing the US is maligning the Chinese and threatening their sovereignty. The Chinese newspaper People’s Daily has taken an extremely aggressive path in generating support of a non-cooperative trade attitude writing “we advise the US side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” Chinese officials have also threatened to cut off exports of rare earth materials used by the US to make electronics, defense materials and electric vehicles. The issue…




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