SMM News: the electronic price of WTI September crude oil futures closed down 0.65 cents, or 1.17 percent, at $55.01 a barrel on Monday. Both oil closed down on Monday amid concerns that global demand for crude oil was growing after US President Donald Trump's comments about tariffs could limit demand for crude from the world's two largest buyers.
Meanwhile, ICE Brent crude oil futures closed down $1.79, or 2.89%, at $60.10 a barrel, according to Huitong Finance APP.
Volatile trade situation puts pressure on the two oil companies of the United States and Brazzaville, the two oil companies have fallen sharply.
Cushing stocks fell by nearly 2.4 million barrels in the week ended Aug. 2, traders quoted market intelligence firm Genscape as saying. WTI's discount on Brent crude narrowed to $5.15 a barrel, the lowest level since July 2018.
Both crude prices fell more than 7 per cent to their lowest levels in about seven weeks on Thursday after Mr Trump's announcement, before recovering, with Brent crude falling 2.5 per cent on a weekly basis and US crude falling 1 per cent.
Concerns about the trade situation hit global stock markets again on Monday, while pushing up safe havens, including yen, core government bonds and gold.
While the latest trade news will lead to a downward adjustment in global oil demand expectations this year and next, Asia is likely to be hit hardest by expectations of slowing oil demand growth, Ritterbusch and Associates's Jim Ritterbusch said in a report.
President Donald Trump's actions could force the Fed to cut interest rates more than it had expected to protect the US economy from trade-related risks.
The fall of the renminbi and the increase in US crude oil exports have also put pressure on oil prices.
On Monday, China let the yuan fall below the 7 yuan mark against the dollar for the first time in more than a decade. A weaker yuan has raised the cost of China's dollar-denominated oil imports. China is the world's largest importer of crude oil.
Signs of an increase in U. S. oil exports have also weighed on oil prices. Us crude oil production rose 260000 barrels a day in June to a record 3.16 million barrels a day, according to data released by the US Bureau of Statistics on Friday.
Iran has impounded an Iraqi tanker, partly boosting oil prices and raising fears of supply disruptions in the Gulf region. Iran's foreign minister said on Monday that Iran would no longer tolerate "maritime crimes" in the Strait of Hormuz.
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