On Monday, the 5th of August 2019, both US and UK crude futures’ prices took a tumble of more than 3 percent, as global growth concerns had been trembling financial markets across the world and fueling up frets of a recessed global economy in a near-term outlook, despite US policymaker’s ballooning optimism over US economy.
In point of fact, latest heavy downswing experienced by both US and Brent crude prices worsened further after US President Donald Trump had tweeted on last Friday (August 2nd) that he would hike China tariff much-higher, which in effect forced China to threat retaliatory measures.
Besides, global crude oil investors remained fretted over the fact that a tit-for-tat tariff on each other’s economy could limit crude demands from two of the world’s largest crude oil buyers amid faltering factory activity, while factory orders for both China and United States had been hovering near multi-year lows.
Nonetheless, on Monday’s (August 5th) market closure, UK crude shrugged off 3 percent of its earlier gains to round off the day at $51.81 a barrel, while US West Texas Intermediate Crude Futures’ price took a header of 1.74 percent to settle at $54.69 a barrel after finding some supports following a steep decline of US crude in inventories at the Oklahoma and Cushing.
Meanwhile, addressing to a pessimistic global oil demand in a near- to medium-term outlook which might pull crude prices down to the 40s per barrel again, Jim Ritterbusch of Ritterbusch and Associates wrote in a client note, “While latest trade headlines will be forcing downward adjustment in global oil demand expectations for this year and possibly next, it is looking quite likely that Asia will bear the brunt of the expected slowing in oil demand growth. ”