Oil Prices Steady Amid Trade War Concerns
Oil prices steadied after falling on Monday as risk-off sentiment returned to global markets following President Donald Trump’s criticism of the Federal Reserve, while concerns over the U.S.-China trade war persisted.
West Texas Intermediate crude futures were trading near $63 a barrel after falling 2.5% in the previous session. Brent closed above $66. Trump stepped up his attacks on Fed Chairman Jerome Powell on Monday, warning that the U.S. economy could slow if the central bank does not move to lower interest rates.
The president has been considering firing Powell, prompting investors to sell stocks, bonds and the U.S. dollar. Oil prices have plunged this month, hitting a four-year low, as concerns mounted over the impact of an escalating trade war between the U.S. and its major trading partners. The decline was exacerbated by an unexpected increase in OPEC+ production, which fueled concerns about oversupply.
WTI for May delivery, which expires Tuesday, rose 0.8% to $63.60 a barrel as of 7:32 a.m. in Singapore.
The more active June contract rose 0.9% to $62.95.
Brent for June delivery settled 2.5% lower at $66.26 a barrel on Monday.
Source: Bloomberg
