Aug 2, 2019

Oil prices nosedive after Trump's tariff tweets

Data:; Chart: Axios Visuals

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.

Go deeper

Big Oil faces a slowing economy and renewed trade war

Illustration: Sarah Grillo/Axios

Oil and natural gas companies are staring down the barrel of a slowing economy, President Trump's on-again-off-again Chinese trade war, persistently low oil prices that plunged yesterday, and even lower natural gas prices.

Where it stands: Big Oil's second-quarter earnings are mixed this week. European majors Total, Eni and Shell reported large drops in profits while BP "bucked the trend." On this side of the Atlantic, ExxonMobil faced a 21% drop in quarterly profit while Chevron saw a 26.3% rise in its quarterly profits, per Reuters.

Go deeperArrowAug 2, 2019

The U.S. is exporting oil to 31 countries

Data: U.S. Energy Information Administration; Chart: Axios Visuals

The U.S. is now exporting crude oil to a record number of 31 countries, according to newly released data from the U.S. Energy Information Administration.

Where it stands: U.S. oil exports are going all over the world, ranging from oil-rich United Arab Emirates to Australia, reaching 2.9 million barrels a day from essentially zero in 2015 before Congress lifted a 40-year-old ban on exporting crude oil.

Oil demand growth hasn't been this slow since 2008

Photo: Yegor Aleyev/TASS via Getty Image

Global oil demand growth from January through May was the slowest for that period since 2008, and the "situation is becoming even more uncertain" as the U.S.-China trade fight heats up, the International Energy Agency said Friday.

Why it matters: Its closely-watched monthly report provides fresh evidence of how the global economic slowdown is weighing on oil markets. Prices are at their lowest levels since January, despite tensions in the Middle East that typically put upward pressure on the market. "Economic woes hold sway over geopolitics," it said.

Go deeperArrowAug 9, 2019