There was decrease in Oil prices on May 6 after US President Donald Trump threat to raise tariffs on Chinese goods this week, risking the derailment of trade talks between the world’s two biggest economies.
Since March 29. US West Texas Intermediate (WTI) crude futures were at $61.68 per barrel at 1338 GMT, down 26 cents. WTI hit $60.04 earlier in the session.
Brent crude futures were broadly steady at $70.88 per barrel, having earlier hit its lowest since April 2 at $68.79.
US president said he would stop US tariffs on Chinese goods this week, pulling down global financial markets, including oil futures.
The head of research at futures brokerage London Capital Group Jasper Lawler said .”Trump’s sudden hard line on China tariffs has spooked investors, who are scrambling to reduce their risk levels in the markets”.
“The prospect of months of trade talks being derailed by Trump has raised concerns over future demand for oil,” he added.
Chinese Foreign Ministry spokesman Geng Shuang told a news briefing on Monday that a Chinese delegation was still preparing to go to the United States for trade talks.”We are also in the process of understanding the relevant situation,” he said.
The deployment sends a clear message to Iran that any attack on US interests or its allies will be met with “unrelenting force”, US national security adviser John Bolton also added
Within the oil industry, there are signs of a further rise in output from the United States, where crude production has surged by more than 2 million barrels per day (bpd) since early 2018 to a record 12.3 million bpd.
The United States is now the world’s biggest oil producer, ahead of Russia and Saudi Arabia