Oil prices have increased on Friday in accordance with the tension between the US and China. Beijing could not set targets for economic growth this year. Meaning that the concern is coronavirus pandemic may overshadow the fuel demand of the world’s second-largest oil consumer due to unknowns.
Brent crude was trading down $1.43, or 4%, at $34.63 a barrel by 0630 GMT, after falling to as low as $33.54.
West Texas Intermediate (WTI) crude dropped by $1.81, or 5.3%, to $32.11 a barrel, having slumped to $30.72 earlier.
Oil prices have risen sharply in recent weeks and are still on track for the fourth weekly earnings after US crude oil fell below zero in April.
However, markets were disappointed by China’s decision not to be able to set an economic growth target this year.
Analysts say the growing tensions between the US and China and Beijing’s plan to implement national security legislation in Hong Kong affect oil and other markets.
By the way, it seems that the demand for gasoline has returned and vehicle traffic has increased in some of the world’s capitals after the coronavirus restrictions have been lifted.
The upcoming holiday of Memorial Day starts the typical US summer vehicle traffic season over the weekend.
Official data showed that this week, US crude inventories fell in the past week against bullish expectations.