Aug 2, 2019 - Energy & Climate
Oil prices nosedive after Trump's tariff tweets
Add Axios as your preferred source to
see more of our stories on Google.
Crude oil also was hit hard by the tariff news, with oil prices suffering their worst trading day in 4 years, falling by 8%.
Between the lines: The tariff announcement could not have come at a worse time for the oil market, which was already primed for losses after the Fed's rate cut decision Wednesday. A weak dollar strengthens oil prices, which are measured in dollars.
- The market also is preparing for a major supply surplus in 2020, which is the result of tepid demand growth at a time of surging supply.
By the numbers:
- WTI crude prices fell below $55 a barrel and Brent dipped to $61.
- Energy stocks fell across the board with the SPDR energy exchange traded funds dropping more than 2% on the day as the trade war escalation and fear of higher tariffs stoked worries about slowing demand in China and around the globe.
