Bad news for the global energy markets. Keep reading if you want to know what it is because we will give you all the details about it.
The energy sector did not look good in the past couple of weeks, especially at the beginning of the month when it suffered decreases of 6 percent. According to some analysts, things will continue to go in the wrong direction for the global energy markets and we’ll tell you why.
The main reason for the downturn
The most important reason that brought us into this situation is the escalation of the well-known trade war between the United States and China. But what exactly happened?
Well, it all started after a tweet from Donald Trump in which he communicates a new decision concerning the trade relationships with China. He basically announced the fact that the United States will introduce starting September 1 an additional tariff of 10 % on the remaining $300 billion of Chinese goods.
The consequence of the unfriendly relationships between the United States and China
The first consequence is the fact that the price of crude oil has deflated. According to Forbes, after Trump’s tweet, the United States had the largest daily drop in the last three years when it comes to oil prices. A lot of people are concerned about this situation and the analysts don’t predict good things in the future for crude oil.
The oil and the energy markets, in general, will not get any better, at least not in the next couple of weeks. We have to be prepared, according to CNBC, for prices like $30 per barrel following the latest unfortunate events.
This is what we know so far about the current situation of the energy market of the United States and the trade war with China. We’ll report back with other news.
Rex Austinwas born and raised in Thunder Bay Ontario on the shores of Lake Superior. Apart from running his own podcast (Ice Fishing And Other “Cool” Things), he spends his time canoeing and backpacking in Northern Ontario.. As a journalist Rex has published stories for Global News (Thunder Bay) we well as Buzz Feed and Joystiq. As a contributor to Great Lakes Ledger, Rex most covers science and health stories. Contact Rexhere