Crude Diplomacy

  • Brent crude closed in a bear market on Tuesday as the trade war ramps up investor concern over consumer and industrial demand.
  • Bloomberg reported China will probably start avoiding imports of U.S. crude oil as tit-for-tat tensions ratchet up, according to traders who supply American crude to China.
  • On the geopolitical front, U.S. Secretary of State Michael Pompeo will hold a joint press conference with the U.K.’s new Foreign Secretary Dominic Raab later today as the two nations agree to work together on maritime security in the Persian Gulf.
  • The effort would aim to protect tankers passing through the world’s most important chokepoint for oil from the showdown with Iran.
  • Meanwhile, Trump imposed further sanctions on Venezuela, freezing the government’s assets in the U.S. It is unclear whether the move will affect companies such as Chevron Corp., which was just granted a three-month waiver allowing it to continue producing oil and gas in the country.

(Source: Bloomberg)