Oil tumbles on slowing Chinese demand, U.S.-China trade spat

Oil tumbles on slowing Chinese demand, U.S.-China trade spat

Oil tumbles on slowing Chinese demand, U.S.-China trade spat

Higher production from Russian Federation and members of the Organization of the Petroleum Exporting Countries has put downward pressure on crude oil prices in recent weeks, the agency said.

Britain's FTSE 100 fell 0.7 per cent to 7,721 while Germany's DAX dipped 0.4 per cent to 12,585. Futures augured a tepid start on Wall Street.

ASIA'S DAY: Chinese stocks rallied but other markets in Asia finished mixed. Japan's Nikkei 225 slipped 0.2 per cent to 22,598.39 while South Korea's Kospi inched up 0.1 per cent to 2,303.71. Australia's S&P-ASX 200 was up 0.5 percent to 6,301.30. Stocks in Taiwan, the Philippines and Indonesia were lower.

He noted that: "Anyone doing business with Iran will NOT be doing business with the United States". "But rather than prolonging the trade conflicts, such heated rhetorical battle between the USA and China will likely lead to a resumption of negotiations before the US midterm elections".

Moreover, amid both economic growth as well as Beijing's mandate that gas make up at least 10 percent of the country's energy mix by 2020 to offset the effects of rampant air pollution from dirtier thermal coal power production, the long term trajectory for both China's natural gas consumption, as well as oil usage, will continue to increase, posing both a geopolitical and financial dilemma for the country that the US and many western powers grappled with for decades.

Prices were driven lower on Friday by ongoing trade concerns between the USA and China.

China will slap 25% duties on an additional $16 billion worth of imports from the U.S. from 23 August, including gasoline, diesel and other petroleum products. The crude oil prices' down trend through July 2018 was attributed to several factors that negatively affected the prices, including the production hikes in Saudi Arabia and Russian after the meeting of the Organisation of the Petroleum Exporting Countries (Opec) with non-member producers in June, which resulted in a decision to gradually ease the group's production in order to balance the supply and demand of global crude oil. The move came in response to the Trump administration's plan to slap the same tariff on an equal amount of Chinese imports in the coming weeks.

Looking ahead to 2020-21, Della Vigna anxious that the impacts of the slowing pace of new projects will start to be felt, and US shale will begin to decline; however, he said now is a ideal opportunity for "big oil" firms to negotiate better tax terms with governments and "do more activity - that doesn't necessarily mean more money".

OIL: Crude prices stabilized after declines the previous session.

Brent crude oil futures were at $74.61 per barrel, lower 4 cents from their previous close.

The Shanghai crude futures rose to 537.2 yuan ($78.55)/bbl, climbing by its daily limit of 5% against Monday's settlement price.

Data compiled by Bloomberg show that investors in Shanghai are holding contracts on average for an estimated time of under 2 hr since their debut, compared with more than 65 hr for London's Brent crude during the same period, signaling the speculative zeal of the trading in China. Saudi Arabia was thought to pump about 10.8 mmbbl or 11 mmbbl per day, said the source.

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