Brent and WTI Recede From 10-Week Highs

Brent and WTI Recede From 10-Week HighsBrent and WTI Recede From 10-Week Highs

Crude oil futures traded lower in mid-morning trade in Asia Wednesday, stepping back from a 10-week high hit overnight, on growing geopolitical tensions between the US and China.
Brent July crude futures fell 36 cents per barrel (1%) from Tuesday's settle at $35.81 per barrel, while WTI July contract was 46 cents per barrel (1.34%) lower at $33.89 per barrel, Global Platts reported.
"Optimism nestled within the markets at the start of the week, carried by reopening hopes, though fresh aggravating news on US-China relations appears to be changing the mood going into midweek," IG market strategist Pan Jingyi said in a note Wednesday.
Crude futures hit 10-week high Tuesday, amid hopes the continued reopening of economies could bring balance to oversupplied oil markets in coming weeks.
Nonetheless, oil pared gains amid growing tensions between the US and China over the origins of coronavirus.
Earlier in the week, US President Donald Trump warned that Washington was considering sanctions on China for its crackdown on Hong Kong, according to media reports.
This came after China's announcement at its National People's Congress in Beijing, saying it would pass a national security law on Hong Kong this summer.


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