- Crude oil prices follow global equities lower after China said it would impose tariffs on various U.S. goods, raising the potential for a trade war that could hurt global growth: U.S. WTI -1.5% at $62.55/bbl, Brent -1.3% at $67.22/bbl.
- “It’s all about the macro picture right now,” said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas (PA:BNPP). “There’s a sea of red on the equity screens, and oil, as a risk asset, is falling as well.”
- The oil price drop comes even as the American Petroleum Institute said yesterday that U.S. crude inventories fell by 3.3M barrels last week.
- An added concern: The net long position in futures and options on Brent crude tops 600M barrels, according to ICE data, meaning that in the event of a sharper drop in price, sellers may find few buyers.
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, WTIU, OILK, OILX, WTID, USOI, USOU, USOD, UBRT, DBRT, OILD, OILU, USAI
- Now read: How Tight Is Global Crude Oil Supply?
Original article