Oil falls as U.S.-China conflict grows, Beijing shuns economic growth target

22.05.2020 - Petr Mazaylo
Oil falls as U.S.-China conflict grows, Beijing shuns economic growth target

Oil prices dropped on Friday as U.S.-China tensions intensified and Beijing failed to set a targeted economic growth for 2020. These raised concerns on the possibility that the coronavirus crisis will dwarf fuel demand in China.

Brent crude fell 4%, or $1.43, at $34.63 per barrel. U.S. West Texas Intermediate plunged 5.3%, or $1.81, at $32.11 per barrel. 

Oil prices rose in recent weeks following the collapse in April, when U.S. crude traded below zero.

Investors were disappointed in Beijing’s decision not to set a target for economic growth this year. Analysts also said that the U.S.-China conflict and Beijing’s plan to impose national security legislation in Hong Kong is weighing on the markets.

U.S. President Donald Trump warned China over their attempts to affirm more control in Hong Kong.

Gasoline demand is recovering worldwide, with traffic congestion returning to pre-coronavirus crisis levels. U.S. crude inventories dropped last week, contrary to analyst expectations.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue
×

Help with deposit?