Trade wars tip oil toward biggest monthly drop in six months

LONDON (Reuters) – Oil was on track for its biggest monthly drop in six months on Friday as U.S. President Donald Trump ramped up trade tensions, weighing on the demand outlook. Brent futures are heading for an 11% slide in May and WTI for a 13% drop, their biggest monthly losses since November. “No notice was taken of data that were positive for prices, whereas mildly disappointing figures put prices under considerable pressure,” Commerzbank analysts said. “This selective reaction is typical of a climate of severe pessimism, as is the fact that market players are currently focusing only on demand worries while ignoring the fact that supply remains limited.” Front-month Brent crude futures, the international benchmark for oil prices, were at $64.91 at 1116 GMT, down $1.96 from last session’s close. U.S. West Texas Intermediate (WTI) crude futures were at $55.31 per barrel, down $1.28 from their last settlement. Both grades earlier hit their lowest since March 8. U.S. President Donald Trump vowed on Thursday to slap tariffs on all goods from Mexico unless it stops illegal immigration, firing up fears over economic growth and appetite for oil. “The decision, understandably, is sending shivers down investors’ spines,” PVM said in… continue reading

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