Oil dragged into US-China trade war, prices slump

Oil dragged into US-China trade war, prices slump

China threatened to impose tariffs on US crude oil for the first time in the escalating bilateral trade war, sending prices to two-week lows on Friday as that compounded worries about a slowdown in global oil demand.

China said crude would be among the US products hit by tariffs of 5% as of Sept. 1. US President Donald Trump said he would offer a response later on Friday.

A trade spat between the world’s two largest economies has dragged on for over a year and roiled financial markets. Though Chinese and US trade negotiators held discussions as recently as this week, neither side appears ready to make a significant compromise and there have been no signs of a near-term truce.

China, one of the world’s biggest crude importers, has sharply lowered US shipments from a record high hit last year. With the latest tariffs, purchases are likely to grind to a complete halt, traders and analysts said. Read More

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