Oil price falls alongside global equities on trade impasse

by   |  VIEW 842
Oil price falls alongside global equities on trade impasse

On Monday, the 13th of May 2019, both UK and US crude had experienced a sharp plunge alongside Wall Street, as a negative turn of event over the US-China trade talk had started to take death tolls on riskier assets including export-oriented stocks and the black gold, crude oil.

However, crude oil futures had opened Monday (May 13th) market higher over concerns of a supply disruption following reports of sabotage attacks on tankers in the Middle East, while threats of Iranian Revolutionary Coast Guards had also contributed to a higher crude oil price over worries of a supply chain crunch in the Strait of Hormuz.

Nevertheless, at the later part of the day, crude oil price was largely pressurized by a massive-scale slump on stocks and other riskier assets, following the reveal of a report that Beijing was going to incline an additional tariff between 5 to 25 percent on all US imports worth of $60 billion.

Citing statistics, UK crude had soured around 0.35 percent to $70.23 per barrel after hitting a session-high of $72.58 per barrel, while US West Texas Intermediate crude had curbed around 0.60 percent of its earlier gains to wrap up the day at $61.04 per barrel, after surging as much as $63.33 a barrel during the morning Asian trading hours.

Adding that military tensions over Gulf had been keeping crude futures well-supported, president of Lipow Oil Associates in Houston, Andrew Lipow said, “The significant sell-off in the equity market has dragged crude oil down with it.

However, crude oil would have been far lower had it not been for the sabotage impacting tankers in the Middle East”.