• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 7 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 2 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 2 hours Theresa May to Step Down
  • 2 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 11 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 1 hour India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 3 hours Total nonsense in climate debate
  • 9 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 9 mins Apple Boycott in China
  • 17 hours Asia Oil Refiners Mull Run Cuts With Margins At 16 yrs. Low For Season
  • 17 hours IMO 2020 could create fierce competition for scarce water resources
  • 16 hours ARAMCO BOARD: Former Dow Chemical CEO Andrew Liveris: I want to help Saudi Arabia become a 21st century economy
  • 17 hours IMO2020 To scrub or not to scrub
  • 16 hours Why is Strait of Hormuz the World's Most Important Oil Artery
Alt Text

The Fear Factor Is Back For Oil

While fundamentals suggest lower oil…

Alt Text

Oil Tanks On Worst Day In Six Months

Oil prices plummeted on Thursday,…

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

Trending Discussions

Oil Prices Drop On US-China Trade War, Saudi Production Boost

Oil prices dropped early on Friday as fears of the escalating U.S.-Chinese trade war and increased production by Saudi Arabia and Russia outweighed concerns over supply disruptions from Venezuela to Libya to looming sanctions on Iran.

At 08:23 a.m. EDT today, WTI Crude was down 0.78 percent at $72.37, and Brent Crude traded down 1.23 percent at $76.44.

Beginning midnight Washington time on Friday, the U.S. imposed new tariffs on US$34 billion worth of annual imports from China, to which Beijing responded by saying that it was imposing tariffs on U.S. goods. In the trade spat with the United States, China has threatened to slap tariffs on imports of U.S. crude oil and oil products.

Such a move by Beijing—which appears more likely with this latest round of tit-for-tat tariffs—threatens to limit U.S. crude oil exports to China that have been gaining pace in recent months and eating into OPEC’s share in the market—a market that is setting the pace of global oil demand growth.

“The oil market is in the hands of global politics,” Norbert Ruecker, head of macro and commodity research at Julius Baer, told Reuters on Friday.

“China’s reciprocation will in a first tranche include agricultural commodities and in a second tranche most likely oil products and crude oil.”

In another bearish development for oil prices, reports and surveys show that Saudi Arabia had begun to raise its production in June, even if it agreed to start boosting output starting in July. Related: As Diesel Dies, One Commodity Is Crashing

The Saudis have reported to OPEC that they had pumped 10.488 million bpd in June, up by 458,000 bpd from their self-reported figure for May, OPEC sources told Reuters. According to the monthly S&P Global Platts OPEC survey, Saudi Arabia pumped 10.39 million bpd last month, up from 10.01 million bpd in May and well above its 10.06 million bpd quota—the highest Saudi production level since December 2016, just before the production cut deal entered into force.

Still, analysts think that increased production may not be enough, and oil prices will be supported by the continuous plunge of Venezuela’s production and possibly the larger than initially expected Iranian loss of exports, now that the U.S. is eager to take as much Tehran oil out of the market as possible.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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