Crude oil rebounds at resistance over Iran concerns, Sino-US crisis

by   |  VIEW 275
Crude oil rebounds at resistance over Iran concerns, Sino-US crisis

On Monday, the 6th of May 2019, both UK and US crude future price had settled higher at a volatile trading day, as nerve-wracking worries had been splashing over the crude oil market following Iran sanction and Trump’s Sunday’s (May 5th) threat to impose tariff on $200 billion of Chinese imports this week.

Earlier at the Asia-Pacific trading hours, crude oil future prices had curbed to a one-month low over renewed concerns of US sanction on Iranian crude, while Iran’s attempt to bypass US sanction and sell its oil in ‘gray market’ had largely contributed to the early nose-dive of crude oil prices.

However, at the later part of the day, crude oil prices had gathered momentum after report had revealed the Chinese delegates might cancel the latest round of trade talk due to be held in Washington to hammer out a trade deal, to conclude a ten-month-long trade war, in light of Trump’s latest threats of inclining tariffs over $200 billion worth of Chinese exports.

Besides, Trump had also added that further tariff hikes on hundreds of billions of Chinese exports might have been on the cards, that rekindled volatility over riskier assets such as crude oil. At the end of Monday’s (May 6th) market closure, the UK crude had settled to wrap up the day at $71.24, after sinking to as low as $68.79 per barrel during the early trading hours, while US West Texas Intermediate had ended the day in a positive territory, settled at $62.25 per barrel after falling to a session-low of $60.04 per barrel, its lowest level since March 29th.