Oil falls as trade worries mounts, Saudi comment heads off losses

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Oil falls as trade worries mounts, Saudi comment heads off losses

On Monday, the 3rd of June 2019, both UK and US crude had extended their losing streak, while trade tensions between United States and China had deepened and so far, what appeared to be a Mexican arrogance ahead of US-Mexico trade talk had added to investors’ worries, as Mexican President appeared to be spurring heats over last weekend despite tangible threats of getting crippled following US tariffs on all Mexican exports.

Besides, a fall of major equity indexes had also weighed on to crude oil future prices. At Monday’s (June 3rd) market closure, UK Crude or Brent crude had rounded off the day 1.2 percent lower at $61.28 per barrel, while US WTI (West Texas Intermediate) crude futures had shed 0.5 percent to settle day at $53.25 per barrel.

While Mexico had rejected a possible US ploy to take back all Central American asylum seekers, the possibility of Mexico tariffs made headway, and a further escalation of Sino-US trade war following Beijing’s threat to curb rare earth element export had begun to take death toll and raised questions over crude oil demands over an elusive possibility of trade agreement between United States and China in a near-term outlook.

Adding that Sino-US trade spat alongside Mexico tariff threats had been heightening investors worries of a global-scale slowdown, an analyst at Ritterbusch and Associates, Jim Ritterbusch wrote at a client note, “Focus has shifted from the supply to the demand side as a U.S.-China trade agreement has proven elusive and as worries over the debilitating effects of tariffs on global economic growth have now shifted to Mexico”.