The rise in the prices of US crude and gasoline stocks marked a sharp fall in prices of oil. The data published on Wednesday showed a fall in the price of Brent Crude oil by 19%, which is $63.87 a barrel by 0854 GMT, having dropped by 0.3%. Whereas, West Texas Intermediate crude fell by 33%, which is to $57.78 a barrel, after the loss of 0.5% in the previous session. Following this, US President Donald Trump had signed a petition supporting the protestors in Hong King against this fall in price.
To this, the Chinese government has warned the US that it would be taking “firm countermeasures” against the US for supporting the protestors in Hong Kong. The trade war between the United States and China began soon after President Donald Trump took over the reins and it has continued since then. This fall in the oil prices somewhat irked the war between the two nations. The chief market strategist at FXTM, Hussain Sayed, remarked,
“The approval of the Hong Kong legislation backing protesters is likely to put the trade agreement into question as China has reiterated its threat of retaliation. If investors suspect that the trade agreement is under real danger, expect to see a sharp sell-off in December. For now, investors are taking a wait-and-see approach.”
The investors have begun showing their concern regarding the depression in the economic growth, and as of now, they are looking forward to a meeting with OPEC (Organization of the Petroleum Exporting Countries) that includes Russia, which is scheduled to be held next week. Speculations are on the high that at the meet with OPEC, Russia may exclude condensate, which is a high-premium light oil, that is mainly extracted during the production of gas from crude oil production. However, the news is not confirmed by the Russian Ministry yet, and they are looking forward to opening discussions before taking any such measures.