Oil prices stabilized on Thursday in international markets below the level of $73 after the first round of renewed U.S. sanctions on Iran came into effect, easing the impact of concerns over oil demand in the context of the U.S.-China trade dispute.
The price of a barrel of oil on the London market was almost unchanged compared to the previous close, amounting to $72.45. Yesterday, it closed trading down $2.37.
There were no significant changes in price today on the U.S. market, where a barrel traded at $66.98. Yesterday, it finished trading down $2.23.
>>>Decline in Saudi Production Boosted Oil Prices Towards $74
Yesterday, the markets were shaken by the escalation of the trade conflict between the United States and China, and the burden was also the Chinese data showing a slowdown in demand.
China responded to U.S. tariff packages yesterday by announcing 25% tariffs on an additional $16 billion of U.S. imports. This will affect trade across a wide range of goods, from fuels and steel products to cars and medical equipment. Crude oil will be exempt.
Concern for Demand
The trade war has unsettled global markets as investors fear that a potential slowdown in growth of the two largest economies in the world will reduce demand for goods.
The anxiety in the oil markets was triggered by data that raised concerns about Chinese demand. Official data showed that Chinese crude oil imports slightly recovered in July after two months of decline, but remained at the lowest level this year due to reduced demand from smaller independent Chinese refineries.
