Oil Retreats From Five-Week High as Trump Damps Trade Optimism - Bloomberg

Oil Retreats From Five-Week High as Trump Damps Trade Optimism - Bloomberg:

Oil retreated from a five-week high as concern over the trade war came back to the fore after President Donald Trump warned he might impose substantial additional tariffs on Chinese imports.

Futures in New York fell as much as 1.1% after closing up 2.7% Wednesday as the Energy Information Administration reported U.S. crude stockpiles dropped the most in almost a year. Trump warned in an interview with Fox Business Network of more levies if there’s no progress at his meeting with Chinese President Xi Jinping on the sidelines of the G-20 Summit on Saturday.

Oil jumped more than 10% in the week through Wednesday on tensions in the Persian Gulf as well as the American stockpiles draw. Trump’s latest tariff threat is reminding investors that an already fragile demand outlook could worsen if the world’s two biggest economies don’t return to the negotiating table. Meanwhile, the Organization of Petroleum Exporting Countries and its allies are set to decide on production levels at a meeting in Vienna next week.