On April 14, oil prices continued to decline amid concerns that an escalating trade conflict between the United States and China could slow global economic growth and reduce energy demand. About this informs Reuters.
Brent crude futures fell 29 cents, or 0.45 percent, to $64.47 a barrel, while U.S. WTI crude futures fell 27 cents, or 0.44 percent, to $61.23 a barrel. Since the beginning of April, both contracts have lost roughly $10 a barrel amid the escalation of the customs standoff between the world’s two largest economies.
It will be recalled that on April 11, the Chinese authorities raised tariffs on imports from the United States to 125%, responding to Donald Trump’s decision to raise tariffs on Chinese goods, thereby increasing tensions in the trade war that creates risks for global supply chains.
The next day, Trump authorized the removal of high tariffs on smartphones, computers and other electronics, mostly imported from China. At the same time, US Commerce Secretary Howard Lutnick said on Sunday that critical technology goods, including semiconductors, would be subject to new tariffs within two months.
The intensification of the trade war has raised fears that domestic prices in China will fall further due to unsold exports.
“Inflation data in China was a window into an economy that is not ready for a trade fight. Consumer prices fell for the second month in a row on a year-over-year basis, while producer prices recorded a 30% drop.” – says the weekly analytical review of Moody’s Analytics.
U.S. energy companies last week cut the number of oil rigs by the most since June 2023 amid an expected decline in demand. The total number of oil and gas rigs decreased for the third week in a row.
