MARKET WATCH: Benchmarks fall amid growing US-China trade tensions

Light, sweet oil prices for September and October fell close to the $1 mark, again settling under $55/bbl on the New York market amid growing US-China trade tensions.

Light, sweet oil prices for September and October fell close to the $1 mark, again settling under $55/bbl on the New York market amid growing US-China trade tensions.

Late last week, US President Donald Trump announced new tariffs on Chinese imports, saying an additional $300 billion of Chinese goods and products would be subject to 10% tariffs beginning Sept. 1. On Aug. 5, the Chinese lowered the value of its currency—the yuan—to the lowest exchange rate in 11 years.

“When the Trump Administration announced additional tariffs on Chinese products on [Aug. 1], most objective traders realized that the trade issues between the US and China are not close to a deal and that global economic growth dissipates as the two largest economies spar,” Drillinginfo analyst noted in a post Aug. 5 detailing the week ahead for crude oil, gas, and NGLs markets.

Brent crude for October delivery, meanwhile, fell more than $2 on the London market Aug. 5, settling below $60/bbl.

Energy prices

Light, sweet crude oil on the New York Mercantile Exchange for September delivery fell 97¢ to settle at $54.69/bbl on Aug. 5 while the October contract fell $1.09 to $54.58/bbl.

The NYMEX natural gas price for September decreased 5¢ to $2.07/MMbtu.

Ultralow-sulfur diesel for September fell 5¢ to $1.85/gal. The NYMEX reformulated gasoline blendstock for September dropped 6¢ to a rounded $1.72/gal.

Brent crude for October fell $2.08 to $59.81/bbl. The November contract fell $1.97 to settle at $59.35/bbl.

Gas oil for August declined $13.25 to $564.75/tonne on Aug. 5.

The average for the Organization of Petroleum Exporting Countries’ basket of crudes was $60.54/bbl on Aug. 5, down $1.13.

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