13.4 C
New York
Friday, May 20, 2022

Oil Prices Slump on U.S.-China Trade Doubts, Dollar Strength

Oil Prices Slump on U.S.-China Trade Doubts, Dollar Strength© Reuters.

Investing.com – Oil prices slumped as a White House economic adviser warned that there was still a lot of work left in order to sort out the trade dispute between the U.S. and China and a stronger U.S. dollar also weighed on the commodity.

New York-traded tumbled $1.63, or 2.95%, at $53.63 a barrel by 10:17 AM ET (15:17 GMT).

Meanwhile, , the benchmark for oil prices outside the U.S., slid $1.14, or 1.82%, to $61.61.

Crude prices had hit their best level of the year earlier Monday on signs that U.S. sanctions on Venezuelan exports had helped tighten supply, while showed that the number of oil rigs operating in the U.S. hit an eight-month low and optimism that the OPEC-led effort to reduce output would help temper the global supply glut supported prices.

But White House economic adviser Kevin Hassett dampened optimism over the trade talks between Washington and Beijing as he told CNBC that the amount of progress ahead of the March 1 deadline remained to be seen and added that “.”

Recent Chinese economic data has revealed signs of a slowdown in the world’s second-largest economy as uncertainty over trade negotiations hampered activity. China is also the world’s largest importer of oil and economic weakness entails lower demand for crude.

Adding to downward pressure on oil, the U.S. dollar strengthened against major rivals on Monday, recovering levels lost last week after Federal Reserve Chairman Jerome Powell emphasized that the central bank would be patient on its path to further policy tightening.

A stronger greenback makes the dollar-denominated commodity more expensive for holders of foreign currencies.

In other energy trading, fell 1.75% to $1.4117 a gallon by 10:19 AM ET (15:19 GMT), while lost 1.21% to $1.8896 a gallon.

Lastly, tumbled 2.71% to $2.660 per million British thermal units.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

11,298FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles