Oil prices dropped on Thursday amid concerns over the escalating trade battle between the United States and China, despite a surprise fall in U.S. crude stockpiles. Brent crude oil futures were at $69.92 a barrel by 0102 GMT, down 44 cents, or 0.63 percent, from their previous settlement. U.S. West Texas Intermediate (WTI) crude futures were at $61.67 per barrel, down 45 cents, or 0.72 percent, from their last close.
The Sino-U.S. trade war has weighed on oil prices this week as heightened tensions between the world’s two biggest economies could the global economic outlook. U.S. President Donald Trump said on Wednesday that China “broke the deal” in trade talks with Washington and would face stiff tariffs if no agreement is reached.
Higher tariffs are set to take effect on Friday, during Chinese Vice Premier Liu He’s two-day visit to Washington from Thursday.
