Yahoo Finance Oil Prices Fall Amid Trade War Concerns
Investing.com - Oil prices fell on Monday, as concern of a trade war between the U.S. and China resurfaced.
Crude oil futures slumped 1.57% to $63.92 a barrel by 10:27 AM ET (14:27 GMT).
Brent crude futures, the benchmark for oil prices outside the U.S., fell 65 cents, or 0.94%, to $68.69 a barrel.
On Sunday China increased tariffs by 25% on 128 different U.S. products including pork, wine, nuts and seamless steel pipes, in response to trade tariffs from the U.S. The news has increased trade tensions between the two biggest economies in the world and risen investor fear of a trade war.
The White House is expected to list Chinese imports that will be tariffed, which will include about $50 billion to $60 billion worth of technology products.
Trading volumes were thin, as European markets were still closed for the Easter holiday. U.S. markets were set to open after being closed on Friday.
The price of oil had risen earlier in the day, supported by data last week that showed U.S. drilling activity had declined for the first time in three weeks. Energy services firm Baker Hughes on Thursday reported that the number of active U.S. rigs drilling for oil fell by seven to 797.
The report eased worry that U.S. shale oil production would derail efforts by the Organization of the Petroleum Exporting Countries’ to curb supply.
OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.
However, concerns of oversupply resurfaced on Monday after Russia reported an increase in production in March, to 10.97 million bpd from 10.95 million bpd in February.
In other energy trading, Gasoline Futures decreased 1.19% at $1.9958 a gallon, while heating oil dipped 0.93% to $2.0022 a gallon. Natural gas futures slipped 2.20% to $2.673 per million British thermal units.
Related Articles
Gold Prices Jump 1% on Safe Haven Demand Amid Trade Tensions
Oil falls to $69 as earlier rally fizzles
Latin American nations compete for capital in surge of oil auctions
