How Is the US-China Trade War Affecting Oil?
Will There be a US-China Trade Deal?
Logic suggests that there will be a deal, according to Burns, who said the United States has “much to lose” if there is a drop in the oil price.
Burns added however that, given how “politically charged” the situation is, it’s “hard” to make any credible predictions.
Rystad Energy refused to speculate on whether there would be a trade deal between the United States and China. Moody’s also chose not to predict whether or not there would be a trade deal.
Kaho Yu, a senior Asia analyst at global risk consultancy Verisk Maplecroft, said a ceasefire would shift the wind in the United States-China dialogue back towards commercial opportunities in the oil industry but added that this would likely be temporary.
“Geopolitics are dynamic, and the United States-China relationship can quickly change,” Yu stated.
“We expect geopolitical tensions between Washington and Beijing to last regardless of whether a trade deal is reached,” the Verisk Maplecroft representative added.
Last month, U.S. President Donald Trump announced on Twitter that the United States would make a deal with China “when the time is right”.
“My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense,” Trump said in the Twitter statement.
When the time is right we will make a deal with China. My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense. We have to be allowed to make up some.....— Donald J. Trump (@realDonaldTrump) May 14, 2019
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