Despite a brief boost in oil prices after two oil tankers were attacked in the Gulf of Oman last Thursday, oil prices have now dropped this Monday following the escalation of global trade tensions, particularly those between the United States and China.
The temporary increase provided by the attack last week was not able to withstand the global concerns around the trade war. Concerns as a result of trade tensions escalated after India retaliated to US-imposed tariffs with a series of tariffs on their own.
Consultancy JBC Energy stated that given the current trade situation globally, “oil markets will have to digest more demand concerns”, thus painting a dire picture for future global trade. Even despite assertions by OPEC + that it is considering extending the agreement for supply cuts, the overall grim prospects for international trade have smothered any lasting boost in global oil prices.
