BY NAVEEN THUKRAL
SINGAPORE – Oil prices fell to a four-year low on Wednesday in its worst five-day losing streak in three years, while several commodities, including base metals, tumbled as the trade war between China and the US is set to intensify.
Stocks in Asia extended a slide on Wall Street as US President Donald Trump looked set to press ahead with whopping 104 percent duties on Chinese goods as global recession fears gripped financial markets.
“Crude oil extended losses amid signs of escalation in the trade war,” ANZ said in a note. “Copper has lost nearly 10 percent since Trump announced his reciprocal tariffs on major trading partners.”
The United States said on Tuesday that the higher tariffs on imports from China will take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by sweeping tariffs.
Oil prices dropped to their lowest in more than four years on looming demand concerns fuelled by the tariffs war between the US and China, the world’s two biggest economies, and a rising supply outlook.
“China’s aggressive retaliation diminishes the chances of a quick deal between the world’s two biggest economies, triggering mounting fears of economic recession across the globe,” said Ye Lin, vice president of oil commodity markets at Rystad Energy.
China’s expected oil demand growth of up to 100,000 barrels per day “is at risk if the trade war continues for longer, however, a stronger stimulus to boost domestic consumption could mitigate the losses,” she said. – Reuters
