Oil prices recorded a 7% sharp decline to close at their lowest levels in more than three years, against the background of the escalation of the trade war between China and the United States, after Beijing announced the imposition of additional customs duties by 34% on all American imports as of April 10. This escalation comes at a time when investors have become more convinced of the possibilities of entering the global economy in a stagnation, especially since China is the largest oil importer in the world. On the other hand, many countries rushed to enhance their preparations to take counter -action, after US President Donald Trump raised customs duties to unprecedented levels for more than a hundred years.
The repercussions were not limited to the oil market only, but also extended to a sharp decline in the prices of major goods such as natural gas, soybeans and gold, while global stock markets witnessed wholesale losses.
Brent crude fell by $ 4.56 or 6.5%, to settle at $ 65.58 a barrel. The US West Texas Intermediate crude fell 4.96 dollars, or 7.4%, closed at $ 61.99 a barrel. Throughout the week, Brent decreased by 10.9%, recording its largest weekly loss in a year and a half, while American crude incurred its largest weekly decline in two years, 10.6%.
Stability of Asian LNG prices
On Friday, the prices of immediate liquefied natural gas in Asia settled at about six months, amid a sharp decline in global markets after US President Donald Trump imposed what he described as “liberation day”, which increased concerns about the global economy in a stagnation.
The average price of LNG delivery to northeastern Asia for the month of May was $ 13.00 per million British thermal units, unchanged from the previous week.
These developments came after China announced the imposition of additional customs duties of 34% on American goods, in a move that is one of the most dangerous chapters of escalation in the wise trade war between Beijing and Washington. Analysts believe that this increased tension would weaken global trade and industrial production, which may negatively reflect on the global demand for LNG.