Oil drops over 5% on China-U.S. tensions, demand doubts - Reuters

Oil drops over 5% on China-U.S. tensions, demand doubts - Reuters:

Oil fell over 5% on Friday towards $34 a barrel as tensions rose between the United States and China, and doubts grew about the pace of demand recovery from the coronavirus crisis.

China is set to impose new national security legislation on Hong Kong, drawing a warning from U.S. President Donald Trump. Beijing also failed to set an economic growth target as the pandemic hammers the word’s second-largest economy.

Brent crude dropped $1.96, or 5.4%, to $34.10 a barrel at 0833 GMT, after falling to as low as $33.54. U.S. West Texas Intermediate (WTI) crude declined by $2.41, or 7.1%, to $31.51.

“Investors are once again having to contend with an intensifying war of words between the U.S. and China,” said Stephen Brennock of oil broker PVM.