Oil limped to its worst weekly loss of the year as tensions lingered over how the trade feud between the world’s top economic super powers will hit demand.
Futures in New York rebounded somewhat on Friday but still ended the week down 6.6%, the biggest decline since late December, after days of escalating rhetoric between China and the U.S. Chinese envoy Cui Tiankai said the Asian nation was committed to striking a deal on Friday but said it’s ready to apply countermeasures to American sanctions.
“These worries over the trade situation with China is becoming more pronounced here,” said John Kilduff, a partner at Again Capital LLC. “It really strikes at the heart of the demand side of the equation of crude oil and the fallout is across the Asian region.”
Oil plunged 5.7% in New York on Thursday as investors fled riskier assets following the White House’s blacklisting of Huawei Technologies Co. and several Chinese surveillance companies, moves that have been met with defiance by Beijing.