- WTI sold-off amid a renewed risk-aversion wave.
- Rising US-China tensions, demand concerns weigh on oil.
- Focus shifts to US weekly crude stocks data.
Following a temporary reversal seen on Monday, WTI (futures on Nymex) resumes its downside momentum and hits fresh three-month lows just above $38, shedding nearly 4% so far.
WTI sellers returned along with the risk-aversion on the European markets, as escalating US-China tensions combined with growing coronavirus cases across Europe dent the appetite for riskier assets.
Earlier this Tuesday, the NY Times reported that the US is considering a ban on some of the cotton products from China’s Xinxiang province. Meanwhile, President Donald Trump said he plans to end America’s reliance on the country.
more to come …
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