Dallas/Austin: Oil prices in 2021 due to the Corona period reached their lowest level, as a result of the US-China trade war, there has been a huge decline in crude oil prices due to the apprehensions of adjacent global recession. Actually, prices were falling since last week. Although President Trump has clearly not said that they will reduce tariffs, China has announced a 34 percent counter -tariff, and the trade war between the two countries is intensifying. As a result, oil prices are falling due to the apprehension that the global recession will come before the expectation. Because now it is certain that the demand is going to decrease. According to the Greenwich Meridian Time (GMT), Brent crude futures fell 3.9 percent per barrel to $ 63.04 per barrel. When the American West Texas Intermediate crude fell 4.03 percent to $ 59.49 per barrel. Thus, both of his benchmarks came to their lowest level since April 2021 (at the end of the Corona period).
Prices declined by about 7 percent after China announced counter tariffs. As a result, there are fears of recession and Brent last week declined by 10.9 percent, while West Texas Intermediate declined by 10.6 percent.
Vandana Hari of Vandana Insights, an analyzing oil market, fears that there is panic in the market, and Trump’s decision may have an ‘growing effect’ (such as snowball grows large in the icy area). Trump will have to do something to stop it, otherwise the ‘trade war’ will bring a recession.
It is well known that China has imposed 34% tariff on US imports in response to Trump’s tariff. As a result, the global trade war has begun on a full scale.
Vandana Hari further explained that Trump has exempted oil, gas and sophisticated oil products from tariff growth. But due to tariff growth on other items, on the one hand inflation will increase, on the other hand the growth in economies will slow down. In addition, business disputes will increase. All these will affect the oil prices.
Jerome Powell, chairman of the US Federal Reserve, said the impact of tariff growth would be much more than expected. Therefore, inflation will increase and economic growth will decrease.
Organizations of Petroleum Exporting Countries (OPEC) and its colleagues have decided to increase oil production to 411,000 barrels per day, earlier 135,000 barrels per day; This step will reduce oil prices and will be recession and deeper.
The post is falling oil prices due to the possibility of recession. America-China Trade War will eventually cause recession first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
