• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 27 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

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 China Retaliates With Tariffs On U.S. Goods

While the oil market was jittery awaiting a Fed hint at interest rate policy, China retaliated in the trade war with the U.S., announcing plans to slap tariffs on US$75 billion worth of American goods and sending oil prices diving early on Friday.  

As of 09:03 a.m. EDT, WTI Crude was down 2.89 percent at $53.75 and Brent Crude was down 1.92 percent at $58.77.

After the Chinese announcement of measures to retaliate for the planned U.S. tariffs on Chinese imports, WTI Crude erased its gains for this week as the renewed escalation in the trade spat again worried investors and traders about the future of the global economy and global oil demand growth.

According to the Chinese announcement, China will place tariffs on a range of U.S. products, including crude oil, in two batches starting on September 1 and on December 15.  

Markets were calmer earlier on Friday, although oil was trading slightly down, as equity and commodity traders waited for a speech by U.S. Federal Reserve chairman Jerome Powell later on Friday at a meeting of global central bankers in Jackson Hole, Wyoming.

Market participants will be looking at signs of Fed’s future policy regarding interest rates, and whether the recent rate cut was a one-off event, or whether it would be followed by a series of cuts to prop up the economy. The Fed is under fire from U.S. President Donald Trump who has been repeatedly calling for rate cuts and blaming the Fed for everything economy-related in the United States.

But the Chinese tariff announcement kind of stole the show from the Fed, at least early on Friday.

This week, oil prices hadn’t moved too much in either direction as the American Petroleum Institute (API) reported on Tuesday a crude oil inventory draw of 3.45 million barrels for the week ending Aug 15, compared to analyst expectations of a 1.889-million barrel draw, but it failed to move oil much higher.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • michael smith on August 23 2019 said:
    We need to produce more here and not have another country hold us hostage! China needs us more than we need them and all we are doing is funding their military ambitions!!!

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