Oil Treads Water Amid Cross Currents

摘要

Oil futures diverged on Monday, with global benchmark Brent expanding its premium against its US counterpart as the market sought direction amid a slew of developments with implications for demand. Traders said concern about heightening tensions between the US and China regarding Beijing’s moves in Hong Kong have put a damper on appetite for length in crude futures. The fears include a derailment of the recent trade deal, which could displace more US crude even as producers cut runs. According to the US Energy Information Administration, China stepped up imports from the US in March (OD Jun.1’20).