Yemisi Izuora
Oil prices eased on Monday on concerns over rising tensions between the United States and China over Beijing’s plans to impose security laws on Hong Kong and the possibility of sanctions from Washington.
Oil prices have risen sharply in recent weeks as an easing of COVID-19 restrictions has led to increased demand, but the tensions between the United States and China are beginning to weigh on sentiment.
Consequently, Brent crude went down 19 cents, or 0.5 per cent at $34.94 a barrel, while US oil was down by 6 cents, or 0.2 per cent at $33.19 a barrel. Both contracts have risen for the past four weeks, although prices are still down around 45 per cent so far this year.
Hong Kong police used tear gas and water cannons on Sunday to disperse thousands of people rallying against Beijing’s plan to impose national security laws on the city.
“The HK security legislation packs on a hefty amount (of) trade war risk premium,” said Stephen Innes, chief market strategist at AxiCorp, noting that it added to market worries last week about the level of Chinese policy stimulus.
Ties between Washington and Beijing have soured since the outbreak of the new coronavirus. President Donald Trump and President Xi Jinping have traded barbs over the outbreak, including accusations of cover-ups and lack of transparency.
Clashes between the superpowers have included Hong Kong, human rights, trade and U.S. support for Chinese-claimed Taiwan.
1 Comment
China operates autarky, a policy that injures other countries. The world should rise against her biological weaponry experimentation and the consequences to humanity, epitomised by covid19.