WTI crude oil had the worst day so far this year over escalating trade tensions driving investors towards safe haven assets and away from oil. WTI lost almost 6% of its value on Thursday, closing the day at $57.91 per barrel.
At the time of writing, WTI is trading slightly better at $58.57 per barrel. An unexpected increase in US crude stockpiles, coupled with rising tensions about the US-China trade war caused crude oil prices’ steepest fall since December 24.
To add to the woes of oil traders, manufacturing and other economic data from the Eurozone were also weaker than expected, adding to fears of economic growth slowdown in global markets. Investors are anticipating the volatility in oil markets to continue remaining high until US and China resume their trade negotiations and make progress on their trade deal.