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Oil falls as U.S.-China tensions take toll

Published 25/05/2020, 03:23
© Reuters.
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TOKYO, May 25 (Reuters) - Oil prices eased on Monday on
concerns over rising tensions between the United States and
China over Beijing's plans to impose security laws on Hong Kong
and the possibility of sanctions from Washington.
Oil prices have risen sharply in recent weeks as an easing
of coronavirus restrictions has led to increased demand, but the
tensions between the United States and China are beginning to
weigh on sentiment.
Brent was down 19 cents, or 0.5%, at $34.94 a barrel by 0152
GMT. U.S. oil CLc1 was down by 6 cents, or 0.2%, at $33.19 a
barrel. Both contracts have risen for the past four weeks,
although prices are still down around 45% so far this year.
Hong Kong police used tear gas and water cannons on Sunday
to disperse thousands of people rallying against Beijing's plan
to impose national security laws on the city. VnL4N2D602F
"The HK security legislation packs on a hefty amount (of)
trade war risk premium," said Stephen Innes, chief market
strategist at AxiCorp, noting that it added to market worries
last week about the level of Chinese policy stimulus.
Ties between Washington and Beijing have soured since the
outbreak of the new coronavirus. President Donald Trump and
President Xi Jinping have traded barbs over the outbreak,
including accusations of cover-ups and lack of transparency.
Clashes between the superpowers have included Hong Kong,
human rights, trade and U.S. support for Chinese-claimed Taiwan.


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