BP Says $100 Oil to Prove Fleeting as U.S.-China Trade War Bites - Bloomberg

BP Says $100 Oil to Prove Fleeting as U.S.-China Trade War Bites - Bloomberg:

Oil bulls cheered by the prospect of $100 oil beware. A rally in prices may be short-lived.

That’s according to Janet Kong, who heads energy giant BP Plc’s trading business in Asia. Any spike on the loss of Iranian supply due to U.S. sanctions probably won’t be sustainable in the long run, she said. That’s because the negative impact on demand from a trade war between the world’s two biggest economies hasn’t been priced into crude yet.

Kong’s comments stand in contrast to views from officials at major oil-trading firms Trafigura Group and Mercuria Energy Group Ltd., who see a looming supply crunch driving global benchmark Brent crude to $100 a barrel for the first time in four years. In recent weeks, prices have largely shrugged off escalating U.S.-China trade tensions, with speculation over the impact of American sanctions on Iran dominating investor sentiment.