Very usefull links


News links




Dow Jones

Oil price



Views and News





Oil tumbles Wednesday on slowing Chinese demand, U.S.-China trade spat

By Stephanie Kelly

Petroleumworld 08 08 2018

Oil prices slid about 3 percent on Wednesday as a trade dispute between the United States and China escalated further and after Chinese import data showed a slowdown in energy demand.

Brent crude LCOc1 futures fell $2.37 to settle at $72.28 a barrel, a 3.17 percent loss.

U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $2.23 to settle at $66.94 a barrel, a 3.22 percent loss. The session low of $66.32 was the lowest since June 22.

China is slapping additional tariffs of 25 percent on $16 billion worth of U.S. imports, from fuel and steel products to autos and medical equipment.

The escalating trade war has rattled global markets. Investors fear a potential slowdown of the world's two largest economies would slash demand for commodities.

“The U.S.-China trade war is set to worsen, and its impact on oil prices will be gradual as the situation develops,” said Abhishek Kumar, senior energy analyst at Interfax Energy in London. “Crude oil and refined products affected by additional duties will reduce their competitiveness in the Chinese market.”

China's crude imports recovered slightly in July after two straight monthly declines, but remained low due to a drop-off in demand from smaller independent refineries.

Shipments into the world's biggest importer of crude last month rose to 8.48 million barrels per day from 8.18 million bpd a year earlier and June's 8.36 million bpd, customs data showed. However, July imports were still the third lowest so far this year.

Also weighing on prices, the U.S. Energy Information Administration reported that crude inventories USOILC=ECI fell just 1.4 million barrels in the latest week, less than half the 3.3 million-barrel draw analysts had expected.

Gasoline stocks USOILG=ECI notched a surprise rise of 2.9 million barrels, not the 1.7 million-barrel drop analysts had predicted in a Reuters poll.

“Overbearing product builds are weighing on the entire energy complex,” said Anthony Headrick, energy market analyst at brokerage firm CHS Hedging LLC.

Prices drew some support from U.S. sanctions against Iran, introduced Tuesday in a range of sectors. From November, Washington will target the petroleum sector in Iran, the No. 3 producer in the Organization of the Petroleum Exporting Countries.

An Iranian newspaper reported that Foreign Minister Mohammad Javad Zarif said a U.S. plan to reduce Iran's oil exports to zero will not succeed.

(GRAPHIC: Shipped Iran crude oil exports: )


Story by Stephanie Kelly in New York, Henning Gloystein in Singapore, and Dmitry Zhdannikov and Amanda Cooper in London; Editing by Bernadette Baum and Lisa Shumaker from Reuters.
08 08 19:24 GMT


We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1

November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter






Editor & Publisher:Elio Ohep/
Contact Email:

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.