PT KONTAK PERKASA – Oil futures suffered their largest single-session loss of the year on Thursday, dropping to the lowest settlement in roughly two months, as the potential for a lengthy U.S.-China trade standoff led to a broad aversion to assets perceived as risky, knocking down global equities
PT KONTAK PERKASA – It was “a risk-off day” with the equity markets “falling out of bed,” said Marshall Steeves, energy markets analyst at Informa Economics.
PT KONTAK PERKASA – “The uncertainty around trade negotiations is adversely impacting financial markets of all sorts including equities and certainly oil futures,” he told MarketWatch. “There was also some technical selling in July WTI when it broke below the May 6 low and then triggered sell stops at $60.”
West Texas Intermediate crude for July delivery CLN19, -1.06% on the New York Mercantile Exchange lost $3.51, or 5.7%, to settle at $57.91 a barrel, with prices at the lowest most-active contract settlement since March 12, according to Dow Jones Market Data.
Crude’s slide also took it below its 200-day moving average, a gauge of long-term momentum, at $60.55.
Global benchmark July Brent BRNN19, -1.09% fell $3.23, or 4.6%, to $67.76 a barrel on ICE Futures Europe, which represented its lowest level since March 25.
Both WTI and Brent crude saw their biggest single-session dollar and percentage losses year to date.
The flare-up in trade tensions between the world’s largest economies, U.S. and China, has raised doubt about near-term appetite for crude if a tariff conflict remains unresolved for a protracted period, market participants have said.
Source : marketwatch.com