Oil Prices Began to Decline due to the Tensions between USA and China
OREANDA-NEWS. On May 27, oil prices began to fall because of the tensions between the United States of America and the People’s Republic of China, as well as concerns about a recovery in demand for fuel.
As of 05:15 UTC, the cost of July futures for Brent crude oil on the Intercontinental Exchange in London was 36.01 US dollars per barrel, which is 0.44 % lower than the closing price of the previous session.
Futures for WTI oil at the New York Mercantile Exchange fell to 34.16 dollars per barrel, the decline is 0.55 %.
According to Commodity Analyst of Schneider Electric, Robbie Fraser, initially, the reason for the collapse in oil prices was a sharp drop in demand due to wide spread of coronavirus infection, and for a sustainable recovery in prices it is necessary that demand returns to its previous level.
At the same time, the opening of world economies is pushed back against the backdrop of tensions between the USA and China.