(Bloomberg) — Crude surrendered its gains as the escalating trade tiff between the world’s two biggest economies darkened the outlook for global demand.
Futures in New York fell as much as 1%, joining a rout for equity markets. China announced higher tariffs on a range of American goods Monday, responding to new levies promised by the Trump administration after talks ended on Friday without a deal. That wiped away an earlier jump for prices after Saudi Arabia said its oil tankers were attacked on Sunday, adding to mounting tensions in the Middle East.
“It’s fears related to trade,” said Stewart Glickman, an energy analyst at CFRA Research Inc. “Most of the incremental demand we expect to get in the oil market is supposed to come from the emerging market.”
West Texas Intermediate for June delivery sank 51 cents to $61.15 on the New York Mercantile Exchange at 11:55 a.m. Brent crude for July settlement slipped 41 cents to $70.21 on the London-based ICE Futures Europe exchange.
–With assistance from James Thornhill, Sharon Cho, Alex Longley and Caleb Mutua.
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