"This fresh tariff headline offers a "pile on" effect to an oil market that has already been seeing downside pressure from some unexpectedly large US crude supply increases that have been weighing on values across this month of May", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Washington's sanctions on Iran and Venezuela continue to lower crude oil production from these countries, trimming the glut of supply in the market and pushing prices upwards. -China trade war. That dispute has prompted worries about a recession. According to the report, comments from U.S. President Donald Trump on a trade war between China and the United States escalated trade tensions and affected the demand. Wall Street's main indexes hit more than two-month lows on Wednesday.
Brent futures are heading for a 10 percent slide in May and WTI for a 13 percent drop, marking their biggest monthly losses since last November.
Meanwhile, U.S. crude oil inventories were forecast to have drawn down last week, after climbing to the highest levels since July 2017 a week earlier due to near-record high production and lower refinery runs in the Midwest.
OPEC and other major oil producers, including Russian Federation, pledged in December to cut production by 1.2 million barrels per day in order to prop up prices, effective from this January.
Because of weakening demand, Bernstein said any upside for oil markets was capped despite relatively tight supply. The Organization of the Petroleum Exporting Countries is expected to meet in coming weeks.
Russia will carefully consider extending its oil output reduction agreement with OPEC+, Russian First Deputy Prime Minister Anton Siluanov told Reuters on Wednesday.
Furthermore, OPEC and its allies including Russian Federation are scheduled to meet in late June or early July to discuss whether its strategy to trim production will continue into perhaps the rest of the year.
"We expect markets to remain underwhelming until the meeting has taken place as investors look to avoid taking risks until the picture is much clearer".
Malaysia PM proposes common Asia trading currency
We consider ourselves civilised people, but we solve problems by killing each other and by destroying whole countries", he added. She said the Chinese firm is also thankful for other countries, including France and Germany, which continue to support Huawei .
Labour's Corbyn: Real danger of no-deal Brexit
It has been four years of rebuilding for the Lib Dems as they joined a hideously unpopular coalition with the Tories in 2010. Jo Swinson has said she will lead a movement to tackle "nationalism and populism" as she joined the race to succeed Cable.