Oil declines as supply fears ease, Trump tweets on Chinese trade

By Jessica Summers on 9/13/2018

NEW YORK (Bloomberg) -- Crude dropped the most in almost a month as global supply concerns receded and a demand-killing trade war intensified.

Futures dropped as much as 2.8% in New York on Thursday. Even as Iranian crude exports shrink, it’s uncertain whether Saudi Arabia and other major producers can or will fill any shortfalls, the International Energy Agency said. Meanwhile, U.S. President Donald Trump tweeted that Chinese markets are “collapsing” as a result of his hardline stance on trade relations between the world’s largest economies.

“Markets are still fairly well-supplied,” said Ashley Petersen, lead oil analyst at Stratas Advisors in New York.

Oil topped $80/bbl in London on Wednesday and the U.S. benchmark crude’s 13% year-to-date advance has already outstripped its 2017 performance. OPEC highlighted a range of risks brewing in the global economy that could hurt oil demand as producers prepared for a meeting later this month in Algiers.

Donald J. Trump @realDonaldTrump The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us. Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home. If we meet, we meet? Sent via Twitter for iPhone.

West Texas Intermediate futures for October delivery declined $1.85 to $68.52/bbl at 10:41 a.m. on the New York Mercantile Exchange. Total volume traded was about 28% above the 100-day average.

Brent for November settlement slid $1.50 to $78.24 on the ICE Futures Europe exchange. The global benchmark traded at a $9.91 premium to WTI for the same month.

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