Oil fell sharply Monday after U.S. President Donald Trump threatened to more than double tariffs on $200 billion worth Chinese imports and Saudi Arabia cut June pricing for all crude grades to the U.S.
New York crude futures were 2.1 percent lower, after rising 0.2 percent on Friday. Trump ramped up pressure on China ahead of trade talks in Washington this week, also raising the possibility of imposing a 25 percent tariff on a further $325 billion of Chinese goods not currently covered.
Meanwhile, the kingdom’s pricing moves appeared to be aimed at easing concerns over supplies to the U.S., after the Trump Administration ended waivers for buyers of Iranian oil, with prices raised to most other regions.
West Texas Intermediate crude for June delivery fell $1.27 to $60.67 a barrel on the New York Mercantile Exchange as at 8:37 a.m. Sydney time. June WTI climbed 13 cents to end Friday at $61.94. It finished the week down 2.2 percent, the second straight weekly decline after seven straight gains.
Brent for July settlement was down $1.24 at $69.61 a barrel. Brent rose 10 cents Friday to finish at $70.85 on the London-based ICE Futures Europe exchange.
Source : Bloomberg