On Thursday, May 30, oil quotes begin to recover after a significant decline the day before. The collapse in oil prices was triggered by information about a possible reduction in the supply of rare earth metals in the US from China.
The escalation of the trade war between both countries continues to grow and this is a cause for alarm to market participants. The current situation has led to significant fluctuations of quotations on the black gold market. On Wednesday, Brent crude quotes dropped to $67.75 per barrel and climbed to $69.62 a barrel today. The cost of WTI light crude dropped on Wednesday to $59.07 per barrel.
According to analysts, WTI prices have fallen below $57 per barrel for the first time since March of this year. The reason for this was the information about the potential reduction in the supply of rare-earth elements from China to the US military and energy industries. In the future, WTI quotes won back the lion's share of intraday losses and rose to $59.08 a barrel.
At present, investors fear increased foreign trade tensions, which are putting pressure on the growth rate of the global economy and relative to the oil demand. According to the American Petroleum Institute (API), black gold reserves in the United States have decreased by 5.27 million barrels over the past week. Despite this, experts are counting on the upward trend in the oil market.
The situation is exacerbated by current geopolitical instability. American authorities recently indicted Tehran, suspecting the Islamic Republic of participating in sabotage with oil tankers in the UAE. Iranian authorities have denied these allegations but tensions on the world stage continue.
