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Oil Falls Below $72 as Trade War Threatens Demand

Published: 02-04-2025, 04:20 pm | Updated: 02-04-2025, 09:33 am

Oil markets have reversed all gains made in 2025 as escalating trade tensions between the US and China threaten global economic growth and energy consumption.

West Texas Intermediate crude fell below $72 per barrel following China’s announcement of retaliatory measures, which include a 10% tariff on US oil imports and 15% levies on coal and LNG.

While direct US oil exports to China are modest at 250,000 barrels per day, the broader implications of a trade war between the world’s largest economies could significantly impact global energy demand. The market volatility comes amid already concerning signals, including declining Chinese manufacturing activity for two consecutive months.

Original Source: Yahoo Finance

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