Trade wars set crude oil lower

Weekly Report - 03/06/2019

Oil falls


On Monday, Oil dropped more than 1% increasing its losses of over 2% since last week after crude markets registered increases. Crude registered its biggest monthly declines in 6-months due to decreasing demand and as trade wars sparked fears of global economic retardation.

U.S. WTI crude futures fell 62 cents to $52.87 per barrel while Brent crude futures dropped 83 cents, to $61.10. On Monday Mithun Fernando, an investment analyst at Australia’s Rivkin Securities said “Oil prices slid on fresh trade worries after U.S. President Donald Trump stoked global trade tensions by threatening tariffs on Mexico, which is one of the largest U.S. trade partners and a major supplier of crude oil".

The Week that was

The United States president Donald Trump stated that the U.S is going to force a 5% tariff on all Mexican imports starting on June 10. Taxes will increase by up to 25% and will start in the coming months if Mexico does not decrease or completely stop unauthorized passage to the United States. Last Thursday Trumps government announced that Mexico needs to “reduce or eliminate the number of illegal aliens” crossing into the U.S.


Main Focus This Week

 Particular busy week for the AUDUSD, the Reserve Bank of Australia's June policy decision is due on Tuesday. The Aussie Dollar will have some volatile moments this week especially if the RBA remarks mark a new rate cut. Now for the popular EUR, European Central Bank's June policy decision will be released on Thursday. Mario Draghi will probably upgrade his warnings over the Eurozone economy and the EUR is unlikely to find any assistance during the press conference.


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