Oil prices tumble as US‑China trade tensions simmer
Oil prices on the New York exchange are falling, influenced by the trade policy of U.S. President Donald Trump. A slowdown in global economic growth has led to decreased demand for the resource, especially in China, which is its largest importer.
Oil prices on the New York fuel exchange are recording declines, which—according to analysts—is the result of the global trade war led by U.S. President Donald Trump. The conflict is negatively affecting the demand outlook for energy.
A barrel of West Texas Intermediate (WTI) for June delivery currently costs $63.30, indicating a decrease of 1.21%. Meanwhile, Brent oil on the ICE exchange is priced at $65.02 per barrel, representing a decrease of 1.28%.
Trade tensions between the US and China
China's top diplomat, Wang Yi, warns other countries against succumbing to U.S. pressure on tariffs. During the BRICS meeting in Brazil, he emphasized that concessions to the White House's tariff policy could only embolden a "tyrant."
"The United States, which has long benefited greatly from free trade, is now going so far as to use tariffs as a bargaining chip to demand exorbitant prices from other countries," said Wang.
Weaker macroeconomic data is emerging from the U.S. economy, suggesting a potential decline in energy demand. Analysts at ANZ Group Holdings note that upcoming indicators might provide a clearer picture of the economic situation across the ocean.
Meanwhile, U.S. Treasury Secretary Scott Bessent has suggested the possibility of banning the export of certain goods to China as a strategy to gain an advantage in negotiations over tariffs. China has announced that it does not intend to yield to pressure and enter into trade talks with Washington.
