WORSENING trade tensions between the US and China have cast a dark cloud over crude prices. Add a heavy shower of refinery closures for maintenance works and it’s easy to see why oil markets are facing a perfect storm.
Demand side fears have fueled the slide in crude oil prices. ICE Brent futures lost around $16/barrel, or 21%, of their value in early June from a 2019 high of $75.60 seen on April 25. Experts agree that a glum outlook for the global economy is to blame.
“Financial markets continue to price in an increased probability of ‘recession’ in the next year,” Chris Midgley, Global Head of Analytics at S&P Global Platts said recently.