- WTI crude oil retreats from its two-month high at $ 34 as US-China tensions escalate.
- The rally in oil prices is losing ground as the dollar strengthens in the face of fears of a trade war.
- The general trend remains positive after an 80% appreciation in May.
Crude oil prices reduced their gains on Thursday, returning from their two-month highs at $ 34.75 to their session lows at $ 33.25 after US President Trump fueled US-China tensions. Trump’s criticisms of China have heightened concerns over a trade war, dampening risk appetite.
Trump threats blame China for meddling in US elections
President Trump has accused China of meddling in the US election with a “massive disinformation campaign” aimed at supporting Democratic candidate Joe Biden. China has responded to Trump’s critics warning of “countermeasures” to the threat of US sanctions and pledging to defend their interests firmly.
Escalating tensions between the world’s two major economies have dampened market optimism over plans to ease COVID-19 restrictions, fueling fears of a trade war that weighed on the dollar on commodities and stock indexes.
The general trend of WTI futures remains positive
WTI’s oil futures are now practically stable on that day, but in a clearly positive trend after appreciating more than 80% so far this month to hit 10-week highs at 34.65 $. Above here, oil could find resistance at the psychological level of 35.00 and above here, $ 36.30 (March 11 high) and the 100-day SMA around $ 37.60.