Oil prices fell after Trump’s threat of new tariffs on china

Vastavam web: Oil prices fell on Friday along with equities as U.S. President Trump’s threat of new tariffs on China reignited fears of a trade war between the world’s two biggest economies.President Trump said on Thursday he had ordered U.S. trade officials to consider an additional $100 billion tariffs on China, escalating tensions with China.Brent crude LCOc1 for June delivery was down 38 cents, or 0.6 percent, at $67.95 per barrel by 0143 GMT.

Shanghai September crude futures ISCc1 were untraded due to public holidays in China, after falling 0.8 percent on Wednesday. Shanghai trading will resume on Monday.While oil market watchers were wary of the brewing trade war between the United States and China, they did not expect to see steep falls amid signs of tightening supplies.The Energy Information Administration (EIA) reported a 4.6 million-barrel draw in U.S. crude inventories last week, compared with analysts’ expectations for an increase of 246,000 barrels.

“U.S. oil inventories remain a volatile gauge, but they still provide a good litmus test for the short-term,” Innes said.Meanwhile Saudi Arabia said on Thursday it would raise its official selling price for May crude for Asian customers.The Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia are committed to cutting output by around 1.8 million barrels per day through the end of 2018 in a bid to clear a global overhang and support prices.