• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 7 hours US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 1 min Something wicked this way comes
  • 9 mins Why NG falling n crude up?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 14 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!

Breaking News:

Norway’s Oil Fund Is Buying Bitcoin

Why GM’s Wireless Battery Could Be A Gamechanger

Why GM’s Wireless Battery Could Be A Gamechanger

General Motors recently revealed its…

The Electrification Of UK Offshore Oil & Gas

The Electrification Of UK Offshore Oil & Gas

Electrification of oil and gas…

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 On U.S.-China Trade War Escalation

Oil prices tanked on Wednesday morning after China upped the ante in the trade war, hinting at stifling rare earth minerals exports to the United States—a move that rekindled concern about the global economy and had investors flee risk assets.

As of 09:15 a.m. EDT on Wednesday, WTI Crude was plunging 3.08 percent at $57.32, while Brent Crude was plummeting 2.52 percent at $66.94.

Crude oil followed today yet another global sell-off after signals of an intensifying trade war came out of China.

“Waging a trade war against China, the United States risks losing the supply of materials that are vital to sustaining its technological strength,” China’s Xinhua news agency said in a commentary, which added to a number of similarly strongly worded commentaries from Chinese newspapers.

China is a dominant exporter of rare earths, and speculation had already started to swirl that China could be using the rare earths trump card in the trade dispute.

“By making unilateral moves to contain technological development of other countries, the United States seems to have overlooked one fact: the international supply chain is so intertwined that no economy could thrive on its own,” Xinhua said, noting that “if necessary, China has plenty of cards to play.”

The escalation of the trade dispute resulted in another big drop in oil prices on Wednesday morning, as investors focused on the demand side of the oil market. The prospect of a protracted trade war between the world’s two largest economies has had investors and traders worried that global economic growth will slow down, dragging down global oil demand growth with it. Oil also got hammered on Wednesday morning because the fear of an economic slowdown had investors flee riskier assets such as oil futures.

Later today, the API will release its weekly U.S. inventory report. The market expects U.S. crude oil inventories to have fallen by 500,000 barrels over the last week, according to ING.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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