Energy Down With Oil Futures on Trade Fears -- Energy Roundup
Shares of energy companies fell alongside oil futures amid fears that a trade war between the U.S. and China was escalating. China struck back at the U.S., saying it would increase tariff levels on $60 billion of U.S. imports, shortly after the U.S. said it would do the same on $200 billion of Chinese imports. Oil prices had surged early in the session after reports that two Saudi Arabian oil tankers were sabotaged in an attack over the weekend near the Strait of Hormuz amid tensions between Iran and the U.S. and its allies in the region. Some strategists said the outcome of an investigation into the incident, which reportedly occurred in United Arab Emirates territory, could exert more influence on oil prices in the short term than the trade issue. "Yes, trade war concerns can have an impact on demand down the road, but geopolitical events can impact oil supply now," said Phil Flynn, senior market analyst at the Price Futures Group. The market is particularly sensitive to issues in the Persian Gulf because of "the growing threat from Iran," according to Mr. Flynn.
-Rob Curran, firstname.lastname@example.org
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May 13, 2019 16:21 ET (20:21 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.