Brent and WTI futures fell today on worries over a threat of a trade war between the U.S. and China. In contrast Shanghai crude futures had a robust start with contracts for the following months leaping around 6% as investors were keen to take advantage of the freshly appeared oil trading instrument.
The pulling down factor for oil markets was a potential trade war between the U.S. and China that made Asian shares CSI300 .N225 sink today. This comes in the wake of a recently signed memorandum by the U.S. President implying that new import tariffs will affect nearly $60 bln worth metals from China. U.S.
WTI futures declined by 39 cents from the previous settlement, moving down to $65.49 per barrel.
Brent futures lost 27 cents, decreasing to $70.18 for a barrel. Another factor restricting growth of oil prices was a hike in the count of U.S. rigs to the maximum of three years – 804, meaning the production C-OUT-T-EIA is going to expand, which has added over 20% since the middle of 2016, attaining 10.4 mln barrels daily.
For a long time oil markets were looking at European Brent and American WTI, while Asia, the globe’s largest and most robustly expanding oil consumer, has remained without its own benchmark, but that could change after the start of Shanghai crude futures.