TEMPO.CO, Jakarta - Price of crude oil drops as trading session comes to a close in New York on Friday, August 3, 2018, (August 4, 2018, Jakarta time). The price drop occurred due to rising concerns over the trade war which looms over the market and causing worries over future demands.
The West Texas Intermediate (WTI) for September 2018 shipment drops by USD 0.47 to a level of USD 68.49 per barrel at the New York Mercantile Exchange.
Meanwhile, price of the Brent Crude for October 2018 shipment drops by USD 0.24 to a level of USD 73.21 per barrel at the London ICE Future Exchange.
Contracts for both major trading classifications had even experienced more than USD 1 drop per barrel. The United States crude classification closes the trading week with a 0.4 percent drop as the Brent drops 1.5 percent over the week.
"There are rising concerns, all this time we have uncertainties on the Iran sanction and uncertainties over tariffs, as we certainly don't need any more trigger for a significant swing [in prices] in one way or another," said Jim Ritterbusch, an analyst in Galena, Illinois.
Fear over decreasing demand from China triggered a slow down on Friday, after the country’s main oil producer Sinopec, trim down its purchase of US crude.
Meanwhile, Unipec, Sinopec trading unit, has stopped crude import from the United States due to increasing trading dispute between Wahington and Beijing, as confirmed by sources close to both sides.
"Demands from China to independent refineries are also lower, while the rising trade war does not help with any positive sentiments," said Warren Patterson, commodity analyst from ING.
ANTARA
