On Friday, both US WTI (West Texas Intermediate) and UK crude futures’ prices fell as much as 2 per cent over a revival of Sino-US tensions, sprawling investors’ optimism of a quicker recovery of the fuel demands, nonetheless, both of the futures’ prices had logged their fourth consecutive weekly gains.
In point of fact, crude oil futures’ prices had been gathering momentum over the recent past after dwindling to a negative figure for the first time on record last month over hopes of an ease of global-scale lockdown.
Concomitantly, a gradual reopening of global economies coupled with a marginal increase in aviation industry demand had been rallying crude oil futures’ prices. Nonetheless, Friday’s downfall of the crude oil futures’ prices were almost entirely goaded by an unprecedented rise of tension between the world’s first- and second-largest economy, as the Trump Administration had been ratcheting up pressures on Beijing over implantation of a National Security Law specially designed to prevent the Hong Kong’s pro-democracy protests.
Aside from that, top US officials including the US Secretary of State Mike Pompeo alongside the US President Donald Trump himself had reiterated multiple times that the global-scale pandemic outbreak had been a result of China’s mishandling of the pandemic data, while trade tensions resurfaced further on Friday after the United States’ Commerce Department had added 33 Chinese institutions, organizations and businesses to a US blacklist.
Besides, latest US blacklisting comes over the heels of a media report that the China had also put together a list of unreliable US entities conducting businesses in China including the tech tycoons such as Apple Inc. and Qualcomm Inc., Chinese operations of which would likely to be restricted in a near-future.
Energy demand doubts doodle as China suspends annual growth target
Quoting statistics, on Friday’s market wind down, UK crude futures’ prices fell by 2.6 per cent to $35.13 per barrel, while the US Texas Intermediate crude futures’ prices pummelled 2 per cent to curtain off the day at $33.25 a barrel.
Nonetheless, both of the crude oil futures’ prices had logged their fourth straight week of gains, while the UK and US WTI crude futures’ prices had logged 8 per cent and 13 per cent in weekly gains respectively.
If truth is to be told, coupled with an amped up Sino-US trade tension, a Friday Beijing statement saying the world’s second-largest economy would not release an annual growth target for the first time on record as the pandemic had kept a lid on its business activities despite an ease of forced closure measures, had hunkered down crude oil futures’ prices, while an analysts of commodity broker PVM, Stephen Brennock said, “The coronavirus has nullified a decade of global oil demand growth and the recovery will be slow.
” Meanwhile, voicing a further downbeat note, a senior oil markets analyst Paola Rodriguez Masiu said on Friday’s market round off, “A second wave (of the coronavirus) is not such a remote possibility and a new round of lockdowns could send prices back to much lower levels very quickly, and the market knows it”.