Oil Markets Mixed on Sino-U.S. Diplomatic Crisis

Ibeth Rivero

"The current situation between China and the United States is something China does not want to see, and the responsibility rests entirely with the United States."

Yesterday, oil prices were mixed in light of the worsening Sino-U.S. diplomatic relationship.

The diplomatic relationship between the United States and China soured after the United States ordered the closure of the Chinese consulate in Houston. This resulted in the escalation of the diplomatic relations between both countries.

The United States alleged that it decided to close the consulate in order to protect the American intellectual property and the American citizens' intellectual property. Apparently, the United States is accusing the staff at the Chinese consulate of coordinating espionage at a research institution.

After the deadline to close the institute expired, the US federal agents entered the consulate and took over the place.

China"The current situation between China and the United States is something China does not want to see, and the responsibility rests entirely with the United States," commented the Chinese Foreign Ministry after the incident.

In retaliation for the move, the Chinese government ordered the US consulate in the Chinese city of Chengdu to close. The consulate in Chengdu officially closed on Monday at 10 AM, afterward, the Chinese authorities entered the consulate from the main entrance and took over it.

“We are disappointed by the Chinese Communist Party’s decision and will strive to continue our outreach to the people in this important region through our other posts in China,” a U.S. State Department spokesperson told Reuters.

The West Texas Intermediate crude oil futures went down by 0.48 percent, closing the session at the 41.09 level. On the other hand, the Brent oil futures managed to advance during the session, gained 0.51 percent, and closed at the 43.56 level.

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On Friday, the US stock markets closed in the negative territory. The Dow Jones Industrial Average went down by 0.68 percent, closing at the 26,469.89 level. Conversely, the S&P 500 dropped by 0.62 percent, closing the session at the 3,215.63 level, while the Nasdaq 100 went down by 0.92 percent, closing at the 10,483.13 level.

The European stock markets also dropped during Friday's session. The DAX went down by 2.02 percent, closing at the 12,838.06 level, while the CAC 40 dropped by 1.54 percent, closing at the 4,956.43 level. Conversely, the IBEX 35 went down by 1.22 percent closing the session at the 7,294.70 level, while the Euro Stoxx 50 lost 1.80 percent, closing the session at the 3,310.89 level.

The coronavirus crisis continues advancing around the world. At the moment, there are 16,422,064 confirmed coronavirus cases, as well as a death toll of 652,318. The United States leads in the number of infections, with 4,371,839 confirmed cases and 149,849 deaths. Brazil, India, and Russia follow the United States in the number of infections.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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