Oil prices mitigate as U.S-China trade war talks initiate

Oil prices mitigate as U.S-China trade war talks initiate

From the past few weeks’ tensions seemed to be brink of rising to cold war standards as the ongoing trade war between US and China appeared to be moving at an oblivion rate. After exchanging a series of blows in the form of statements and tweets between the countries presidents, it seemed as if the talks to alleviate the situation was going to be left unescorted.

The trade war seemed to be a profit collection mission for the US, as according to the Department of Treasury collected tariff duty to the amount of $63 million dollars over the span of 12 months, ever since the duration of the trade war. However, according to data collected from China’s National Bureau of Statistics, it showed that domestic industrial productions that covered major sectors such as manufacturing, mining and utilities grew in the range of 44%. The trade war took a toll on China’s exports to the US fell by 10.7%.

China’s foreign minister, Wang Yi quoted, “Beijing will not respond to threats, including threats on a trade level. Even though he had hoped for a round of high-level trade talks in September that would have led to a positive outcome.”

On 14th Oct, oil prices decreased a bit in value as vague details surfaced of trade talks between US and China moving forward. Brent Crude futures fell down in value by 25 cents to $60.26 a barrel, while the U.S Westside Texas Intermediate crude futures fell down by 25 cents to $54.45 a barrel. The drop in price is the first in weeks as both the contracts were up by 3%, which was the first gain in the following week.

Most of the gains were observed after Friday as an Iranian oil tanker was attacked off the south of Saudi Arabia’s cost in the Red Sea. The details titled “Phase 1” constituted as the talks moving forward between US and China paved the way to suspending the tariff duty on products based out of China. The talks also racked increase financial markets all over the world.

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