A number of parties are raising their concern over oil industry’s continuous contraction (Image via: Dawn.com)

Oil Prices Fell to the Lowest Amid U.S.-China Trade War

On Monday, the U.S. crude is crumbling down by the news about the oil prices. It is reported that Brent crude, a major trading classification of sweet light crude oil, fell 63 cents. It equals to 1.1%, which is $58.71 a barrel. The price is the lowest since August 15. Meanwhile, the 68 cents decreasing happens to U.S. oil. It equals to 1.3%, which is $53.49 a barrel. It has fallen to $52.96 earlier. The number is the lowest since August 9. The chaotic situation in U.S. market is connected to the trade war between U.S. and China.

Oil prices has fallen after China made a revenge with the imposition of tariffs on $75 billion U.S. goods. Jeffrey Halley, market analyst at Oanda, said that the oil market this week will recover only when China and U.S. have a conversation about their trade war and decide to mutually take a step back. The solution is pretty much the only hope. In the annual economic symposium, Jackson Hole, Wyoming, U.S., the Federal Reserve chair Jerome Powell said that the country’s economy is in favorable place. He also stated the Federal Reserve will act as appropriate to keep the current economic expansion on track. However, things will not be easy for the oil industry.

Concerns over the oil industry has been increasing. It has a continuous contraction. The PVM broker Stephen Brennock said a number of parties are worried about oil prices. Furthermore, the inventors are anxious about the tensions in the Middle East. The Iranian foreign minister revealed on Friday that he met with President Macron regarding a nuclear agreement signed in 2015. Iran says it will no longer comply with Europe. The country demands Europe to find a solution that can allows Iran to sell oil without being overshadowed by U.S. sanctions.

Source: https://www.reuters.com/article/us-global-oil/oil-down-nearly-2-as-trade-war-shakes-confidence-idUSKCN1VG01W