US-China Trade War Poses Greatest Threat to Crude Oil Prices
US-China Trade War Poses Greatest Threat to Crude Oil Prices Crude oil prices may continue their rise in Q1 of 2020 amid renewed market optimism from the reduced likelihood of a no-deal Brexit and easing trade tensions between the US and China. Year-to-date, Brent has risen just a little under 20 percent. Crude oil prices may be also rise as a result of production cuts by OPEC that are expected to tighten supply as demand for the energy source rises in a perkier sentimental climate.
Brent has been battered by the US-China trade war and the multi-iterated contagion effect the Sino-US conflict has had on other parts of the world. Disruptions in cross-border supply chains in Asia and Latin America have contributed to the global slowdown and contraction in manufacturing with businesses withholding capital and investment amid the economic hostilities.