LONDON: Escalating tension in the Middle East is driving up oil prices, a huge import cost for many economies, putting more strain on global growth already hurt by the trade war being waged by U.S. President Donald Trump and weakening consumer confidence.Crude oil prices spiked more than 4per cent after two oil tankers were attacked in the Gulf of Oman on Thursday, just a month after strikes on tankers in the United Arab Emirates and oil-pumping stations in Saudi Arabia.Trump, meanwhile, has been fighting a trade war against China and is beginning to turn his attention to other trading partners, a policy likely to raise the chances of a recession both at home and abroad.Global growth is already under threat from the trade war, slumping demand, Brexit and wider geopolitical uncertainty.The last thing it needs is another serious problem."Adding to the ubiquitous trade tensions, an increasingly uncertain situation in the Middle East is arising after U.S. Secretary of State Michael Pompeo … [Read more...] about Rising oil prices add to global economic strife
Global crude oil prices
Demand side fears fuel oil price storm
Worsening trade tensions between the United States and China have cast a dark cloud over crude prices. Add a heavy shower of refinery closures for maintenance works and it’s easy to see why oil markets are facing a perfect storm. Demand side fears have fueled the slide in crude oil prices. ICE Brent futures lost around US$16 per barrel, or 21 percent, of their value in early June from a 2019 high of $75.60 seen on April 25. Experts agree that a glum outlook for the global economy is to blame. “Financial markets continue to price in an increased probability of ‘recession’ in the next year,” Chris Midgley, Global Head of Analytics at S&P Global Platts said recently. Bickering over trade between China and the US — the world’s largest economies and consumers of crude — are causing forecasters problems. Platts Analytics has revised its oil consumption growth forecast lower. In Asia, which accounts for around 60 percent of global demand … [Read more...] about Demand side fears fuel oil price storm
Oil prices extend drop as trade wars stoke global economic fears
SINGAPORE (REUTERS) - Oil prices fell more than 1 per cent on Monday (June 3) to extend losses of over 3 per cent from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand as trade wars fanned fears of a slowdown in the global economy. Front-month Brent crude futures, the international benchmark for oil prices, were at US$60.97 at 0044 GMT. That was US$1.02 cents, or 1.7 per cent, below last session's close. US West Texas Intermediate (WTI) crude futures were at US$52.71 per barrel, down 79 cents, or 1.5 per cent. The drops followed price slumps of more than 3 per cent on Friday, which made May the worst-performing month for crude futures since last November. Edward Moya, senior market analyst at futures brokerage Oanda in New York, said last month's crude oil price fall of more than 10 per cent was "the worst May performance in seven years as the escalation of the global trade war saw the global growth outlook crumble". While Moya warned … [Read more...] about Oil prices extend drop as trade wars stoke global economic fears
Global stocks, oil prices dive in ‘perfect storm’
NEW YORK (WASHINGTON POST, AFP) - World stock markets and oil prices slumped on Thursday (May 23) in a "perfect storm" of Europe elections, fresh economic gloom, the China-United States trade war, and beleaguered British Prime Minister Theresa May's decision to delay another key Brexit vote. The Dow Jones industrial average plunged 448 points at its low before clawing back late in the day to finish at a loss of 286 points, or 1.11 per cent, driving it into negative territory for the week. If the Dow were to finish in the red for the week, it would be the fifth week in a row and the first such slump in eight years. Technology continued to sink the blue chips as US President Donald Trump ratcheted up pressure on Chinese tech firms. United Technologies and IBM led the Dow Jones downward. Energy was hit by a steep drop in oil prices, dragging Exxon Mobil and Chevron with it. Energy, technology, industrials and financials were the biggest losers of 11 sectors. Utilities and real estate were … [Read more...] about Global stocks, oil prices dive in ‘perfect storm’
Oil prices dip on record U.S. output, but global market tense
Oil prices fell on Thursday, pulled down by record U.S. crude production that led to a surge in stockpiles. Outside the United States, however, oil markets remained tense as exemptions to U.S. sanctions on Iran expired, a political crisis in Venezuela escalates, and as producer club OPEC keeps withholding supply. Spot Brent crude oil futures were at $71.91 per barrel at 0239 GMT, 27 cents, or 0.4 percent, below their last close. U.S. West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3 percent, at $63.41 per barrel. "Crude oil prices fell sharply as stockpiles in the U.S. rose to their highest level since 2017," ANZ bank said on Thursday. "This comes as U.S. refineries head into the spring maintenance period, stoking fears that crude oil demand will be soft and stockpiles will continue to rise," it added. U.S. crude stockpiles last week rose to their highest since September 2017, jumping by 9.9 million barrels to 470.6 barrels, as production set a record high of 12.3 … [Read more...] about Oil prices dip on record U.S. output, but global market tense