Crude Posts Worst May in Seven Years as Trade-War Anxiety Builds - Bloomberg

Crude Posts Worst May in Seven Years as Trade-War Anxiety Builds - Bloomberg:

Oil posted its worst May performance in seven years as global trade tensions escalated, undermining the outlook for energy demand growth.

Futures tumbled 5.5% in New York on Friday to a depth not seen in more than three months. Equities also plunged as investors deserted risky asset classes for the safety of gold and U.S. Treasuries. President Donald Trump’s threat to punish Mexico with tariffs because of illegal immigration darkened already-parlous global trade prospects.

Oil surged more than 40% to start the year on the strength of OPEC output cuts and crises in Venezuela, Iran and other suppliers. But since peaking in late April, prices have fallen off more than 19% as the U.S.-China trade dispute intensified. A jump in U.S. gasoline stockpiles disclosed in a government report this week added to angst about slackening demand.