On Monday, as investors were bothered over the global economic growth prospects within a deadlock in Sino-U.S. trade talks, oil futures were mixed, and US crude was plunging.
The U.S. West Texas Intermediate futures were down 9 cents, or 0.2%, from their previous settlement at $61.58 per barrel. The trading closed steady on the day.
On the flip side, up 11 cents, or 0.2%, from their last close, Brent crude futures were at $70.73 per barrel.
With the United States hiking tariffs on $200 billion worth of Chinese goods last Friday, the conflict escalated between the world’s top two economies. It was after President Donald Trump said Beijing “broke the deal” by breaking a promise on earlier commitments made during months of negotiations.
As Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests, the parties appeared at a deadlock over negotiations on Sunday.
Data from the International Energy Agency showed that in the first quarter of 2019, the United States and China together accounted for 34% of global oil consumption
A head of analytics at Interfax Energy in London said, “The US-China trade war is set to intensify, which will limit gains in prices.”
In addition, he also said, “Market participants will closely watch China’s retaliatory steps in response to the imposition of additional US tariffs on Chinese goods,” Kumar said, adding the dispute “could be particularly detrimental to the growth in global oil demand.”
Last week, for the third time in four weeks, U.S. energy companies reduced the number of oil rigs operating in an early indicator of future output, separately.
On Friday, General Electric Co’s Baker Hughes energy services firm said a total count down to 805 of drillers cut two oil rigs in the week to May 10.
As the independent exploration and production companies cut spending on new drilling, the rig count has declined over the past five months.
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