Oil Trades Near Two-Week Low on Concern Over U.S.-China Dispute

Futures in New York traded below $63 a barrel after dropping 4.4 percent last week. While U.S. President Donald Trump predicted the Asian nation will be first to buckle as the world’s two largest economies teeter on the brink of a trade war, a speech by China’s Xi Jinping at a conference on Tuesday may shed some light on his plans. Meanwhile, money managers slashed bets on rising West Texas Intermediate crude by the most since August, while short-selling surged.

Oil is losing steam after rising more than 5 percent last month as Trump repeatedly raises the stakes against China, rattling markets. Along with other risky assets, oil took a blow on concern the escalating tension will threaten growth that drives energy demand amid record U.S. output. That could hinder the efforts of the Organization of Petroleum Exporting Countries and its allies to curb a global glut and prop up prices.

“The market is currently concerned for the escalating China-U.S. trade war tensions,” said Bjarne Schieldrop, chief commodities analyst at SEB AB. “And with good reason, since this will be bad for global growth and oil demand growth further down the road.”
more at:  https://www.bloomberg.com/news/articles/2018-04-09/oil-holds-loss-as-crude-bulls-flee-on-u-s-china-trade-tension