Ten­sions be­tween big economies in­ten­si­fies

Yorkshire Post - Business - - BUSINESS / MARKET REPORT -

Global oil bench­mark Brent fell more than $ 2 a bar­rel on Wed­nes­day after US Pres­i­dent Don­ald Trump threat­ened to levy new tar­iffs on China and Libya an­nounced the re­open­ing of key oil ex­port ter­mi­nals.

The threat of tar­iffs on a fur­ther $ 200 bil­lion of Chi­nese goods sent com­modi­ties lower along with stock mar­kets, as tension be­tween the world’s big­gest economies in­ten­si­fied.

“Trade con­cerns have bit­ten to­day,” said Michael Mc­Carthy, chief mar­kets strate­gist at CMC Mar­kets. “If th­ese tar­iffs are in­tro­duced there will be an im­pact on global growth and de­mand.”

The price fall was aided by news that Tripoli- based Na­tional Oil Corp ( NOC) had lifted a force ma­jeure on four Libyan oil ports, say­ing pro­duc­tion and ex­ports from the ter­mi­nals would “re­turn to nor­mal lev­els in the next few hours”.

Libyan oil pro­duc­tion fell to 527,000 bar­rels per day ( bpd) from a high of 1.28 mil­lion bpd in Fe­bru­ary fol­low­ing the port clo­sures, the NOC said on Mon­day.

“The lift­ing of force ma­jeure at all the Libyan ports will cer­tainly come as re­lief from a sup­ply per­spec­tive, but it re­mains to be seen how quickly ex­ports can re­turn to nor­mal,” Harry Tchilin­guirian, head of oil strat­egy at BNP Paribas, told Reuters Global Oil Fo­rum.

Adding to the bear­ish mood were signs of a pos­si­ble re­lax­ation of US sanc­tions on Ira­nian crude ex­ports.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.