Miscellaneous News

FriedButter

FriedButter

Colonel
Registered Member
Please, Log in or Register to view URLs content!

U.S. crude oil tumbles more than 6%, trades below $56 as China imposes retaliatory tariffs​

U.S. crude oil futures fell more than 6% on Wednesday, as China slapped retaliatory tariffs on the U.S. after President Donald Trump’s sweeping levies took effect.

The U.S. benchmark dropped $4.01, or 6.7%, to $55.57 per barrel by 7:53 a.m. ET. Global benchmark Brent tumbled $4.04, or 6.4%, to $58.78.

The oil sell-off took a leg lower after Beijing announced tariffs of 84% on U.S. goods in response to Trump’s levies. China’s tariffs take effect on April 10.

Traders are worried the world is descending into a full-blown trade war that will trigger a recession, hitting crude oil demand. OPEC+, meanwhile, has agreed to accelerate output in May, which will bring more oil to a market that was already facing a surplus.

The collision of recession fears and growing oil supply is a “toxic cocktail,” Helima Croft, global head of commodity strategy at RBC Capital Markets, told CNBC on Tuesday.

The U.S. and Iran are scheduled to hold talks in Oman on Saturday to discuss the Islamic Republic’s nuclear program. Successful negotiations could result in more Iranian oil entering the global market.
Click to expand...

FYI. Russia break even is estimated around ~$45 per barrel but a lot of US oil is between ~$55 to $60. If OPEC is willing to eat an bullet then they could run US oil into an crisis under Trump lol.
 
G

GulfLander

Major
Registered Member
daifo said:
Glenn found the amount of services and us mnc trade are in China which the US don't account for in their deficit account. If you take those in, the trade is closer to balance than unbalenced.

https://twitter.com/i/web/status/1909873793973338353
Click to expand...
Curious, how much localizationis the software/service industry in CN? Like if suddenly, Ad0be, Micr0s0ft etc got banned by U.. S to do business in CN?
 
P

Proton

Junior Member
Registered Member
FriedButter said:
Please, Log in or Register to view URLs content!


FYI. Russia break even is estimated around ~$45 per barrel but a lot of US oil is between ~$55 to $60. If OPEC is willing to eat an bullet then they could run US oil into an crisis under Trump lol.
Click to expand...
Oil is only about 1% of the US economy though, but perhaps a oil-sector crisis could still have some massive ripples throughout an economy already dealing with serious headwinds.
 
FriedButter

FriedButter

Colonel
Registered Member
Proton said:
Oil is only about 1% of the US economy though, but perhaps a oil-sector crisis could still have some massive ripples throughout an economy already dealing with serious headwinds.
Click to expand...

Economically, it would be limited but it will be politically problematic to say the least. MAGA will be forced to either let US oil go bankrupt, nationalize it, or bail them out. Assuming Oil continues to go lower. All 3 options have extremely poor political support.
 
daifo

daifo

Major
Registered Member
GulfLander said:
Curious, how much localizationis the software/service industry in CN? Like if suddenly, Ad0be, Micr0s0ft etc got banned by U.. S to do business in CN?
Click to expand...

Those generic commercial software are all replaceable with open source or you can just spin up a team to build a similar product in quick fashion. The Chinese has accrue enough buisness practices in all industries in the last 2 decades to reproduce the enterprise software like salesforce or oracle erp etc Them leaving China would actually help opensource and the local software industry.

The ones that are hard/difficult to replace are the ones for niche industrial and scientific purposes like the chip design software which some has already been gimped or ban.
 
You must log in or register to reply here.
Top