LONDON: The sustained US-China trade war, which saw further tariffs being announced last week by both countries, will continue to have a negative impact on the oil market, analysts said.
China said it would start placing 5 to 10 per cent tariffs on over 5,000 American products worth $75 billion in retaliation against the US, with the tariffs set to come into effect in two separate batches in September and December. Among the listed products included US crude oil imports to China. US president Donald Trump in response tweeted out that tariffs already in place on Chinese products would be increased from 25 to 30 per cent starting in October, and that a new round of tariffs scheduled for September would now also be increased from 10 to 15 per cent.
The tit-for-tat measures saw oil prices taking a dip with Brent closing at $59.34 and West Texas Intermediate (WTI) on $54.17 for the week.