18-09-2018 05:40 PM
Oil prices dropped on Tuesday morning in Asia as the U.S. was determined to force 10% tariffs on a further $200 billion worth of Chinese goods on Monday raising anxiety in the market.
Trump added a statement that if China plans to strike backs, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
According to Sunil Kumar, Market Expert and Director at Enrich Commodities - “The mounting trade clash has hurt trading sentiment. The impact on economic development is gradually soaking in, which again upsets oil prices,”
At the forefront of the U.S. crude sanctions against Iran in November, the oil producer has decreased its export by 580,000 barrels per day in the previous three months.
The U.S. Energy Information Administration said on Monday that the country’s oil output is likely to rise by 79,000 per day to 7.6 million bpd next month.
Russia’s energy minister, Alexander Novak, said on Monday that the country is ready to lend a hand to the U.S. to balance the oil market, after the two had a conference last week to discuss about enhanced oil production to compensate the deficit from Iran.