…from Russia Today, Moscow
[ Editor’s Note: The far-flung trade boomerang comes home. Oil prices are going down, due the combination of the Gulf States trying to fill Iran’s lost production, and the trade-war freight train coming on the tracks.
Fears are growing that the US sanctions sledgehammer has become the anchor of US foreign policy, but will eventually turn into a wrecking ball. On top of that, we all know how easily we can slip into a Mid East war, especially over an “incident”, and even more so when Bibi wants to make sure that he wins the autumn election rerun in Israel.
We have seen what renegade leaders will do to stay in power. Bibi is already trying to push through the Likud-dominated Knesset a bill to give him immunity from prosecution, but he has to win to be able to hide behind it.
Gosh, some of us would view that as obstruction of justice, but apparently it is game on in Israel, same as it is here, but in a more covert way. The European Union has Trump’s crosshairs focusing on it, despite Trump’s sanctions against Mexico being avoided.
It is a toss up that we could have a shooting war somewhere so Trump can grab headlines for defending America, when his real battle is the German bank records being turned over to Congress … Jim W. Dean ]
– First published … June 05, 2019 –
Brent futures were down 27 cents, or 0.4 percent, at $61.70 a barrel as of 9:20am GMT. US West Texas Intermediate (WTI) crude fell 0.9 percent, to $52.98 a barrel. The US benchmark closed 0.4 percent higher on Tuesday.
Oil was hovering on the edge of a bear market after falling almost 20 percent from a peak in late April over US trade policy fears that the global economy is headed for a sharp slowdown.
“Markets are bearish with the outlook for slowing growth in global crude demand, as well as rising US production leading to a glut,” Miyoko Nakashima, a senior strategist at Mizuho Securities in Tokyo told Bloomberg.
Even if the Organization of the Petroleum Exporting Countries (OPEC) cuts output further, WTI crude futures may only rise to about $60 a barrel as the trade conflicts will limit demand growth, she said.
To prevent oversupply and prop up the market, OPEC, together with allies including Russia, has been withholding production since the start of the year. The group plans to meet later this month or in early July to decide whether to continue to curb supply.