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Oil prices fell more than 1% on Tuesday and Brent crude oil futures settled below $60 a barrel, near a seven-month low, as trade tensions between the United States and China heightened concerns about weak global demand.
In midday trading, Brent crude oil fell to a low of $58.81 a barrel, down more than 22% from its April high. This decline has pushed Brent crude oil futures into the "bear market" region.
Over the past week, the price of Brent crude oil has fallen by more than 9%, US President Trump has vowed to impose new tariffs on Chinese imports, and China has taken further measures against American agricultural products.
The United States also listed China as a currency manipulator on Monday in response to the devaluation of the yuan. U.S. President Trump dismissed Tuesday's concerns about the protracted trade war between the United States and China. Beijing warned that Washington's decision to list China as a currency manipulator would lead to chaos in financial markets.
Brent crude oil futures fell 87 cents, or 1.45%, to $58.94 a barrel.
U.S. crude oil futures fell $1.06, or 1.94%, to $53.63 a barrel.
"As far as the oil market is concerned, there are two key questions: 1) why China should continue to buy American crude oil? 2) Why should China continue to abide by U.S. sanctions when buying Iranian oil?" Carsten Fritsch, an analyst at German Commercial Bank, said in a report.
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