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LONDON / Reuters
Oil hit a two-week low on Wednesday after China said it would impose tariffs on a number of US goods including agricultural products, raising the prospect of a growing trade war that could hurt the global economy.
China, the world’s largest importer of raw materials, lashed back at the Trump administration’s plan to levy tariffs on $50 billion of its goods, announcing a list of duties on US imports including soybeans, planes, cars, whiskey and chemicals.
US stocks fell at the start of trade, while in the commodity markets, soybeans were set for their biggest one-day fall since last July. Gold gained, reflecting growing nervousness among traders and investors. Brent crude futures fell $1.07 to $67.05 a barrel by 1333 GMT, down 5 percent so far this week.
US WTI crude futures fell $1.14 to $62.37 a barrel. Oil had already been under pressure ahead of a possible rise in US inventories, with the EnergyInformation Administration (EIA) due to report weekly stock levels later on Wednesday.
“We’re seeing the reaction across the board … crude oil is keeping an eye on stocks and with S&P (futures) down … we’re seeing renewed weakness ahead of the EIA this afternoon,†Saxo Bank head of commodities strategy Ole Hansen said.