Oil held losses near a seven-week low as China vowed to retaliate against the U.S. administration’s latest tariffs, raising trade tensions between the world’s two biggest economies.
Futures in New York were little changed after sliding 3.2 percent Wednesday. China will slap 25 percent duties on an additional $16 billion worth of imports from the U.S. from Aug. 23, including gasoline, diesel and other petroleum products. Investor concern that the trade spat will limit energy demand growth overshadowed Energy Information Administration data released Wednesday that showed U.S. crude inventories fell the second time in three weeks.
West Texas Intermediate crude for September delivery traded at $67.04 a barrel on the New York Mercantile Exchange, up 10 cents, at 12:33 p.m. in Tokyo. The contract declined $2.23 to $66.94 on Wednesday, the lowest close since June 21. Total volume traded was about 38 percent below the 100-day average.
Brent for October settlement traded at $72.51 a barrel on the London-based ICE Futures Europe exchange. Prices dropped $2.37 to settle at $72.28 on Wednesday. The global benchmark crude traded at a $6.14 premium to WTI for the same month.
Source : Bloomberg