Demand Destruction Blocks Oil Price Increase. Dollar Up Amid Resurfaced US-China Tensions

23 July 2020

    Oil prices saw an increase, but gains had been blocked by a sudden rise in US crude oil reserves, as the pandemic hit fuel consumption once again. WTI had gained 0.1%, settling at $41.96 a barrel, while Brent saw a 0.1% rise to $44.31. 

     

    The Energy Information Administration commented that inventories rose unexpectedly and demand slipped in the recent week, following yet another sharp increase in US coronavirus cases.

     

    Meanwhile, USD had gotten off its milestone lows Thursday, and held onto gains against the yuan, amid the yet-again-heightened US-China tensions.

     

    The US had given China until Friday to close its consulate in Houston, following accusations of spying, and Donald Trump said it was "always possible" other Chinese missions could be ordered to close as well. China had already promised a response. 

     

    Tensions threw the yuan on its sharpest slide in nearly two months, and have given the USD the logical support. Not a large increase, nevertheless, to 94.980.


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