8/15, 11:32 AM (Source: TeleTrader)
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Crude drops on crushed hopes in US-China talks

As China heightened the rhetoric on Thursday and threatened again to retaliate against the new import tariffs planned by the United States, stocks in Europe fell to session lows and oil plunged. Following the worst selloff on Wall Street this year, US President Donald Trump proposed a meeting to his counterpart Xi Jinping and hinted at discussions regarding the political crisis centered on Hong Kong. The initiative was seemingly brushed off as the government in Beijing accused the other side of breaching "consensus" between the two leaders regarding trade, even though the US has earlier delayed the implementation of the levies and excluded a number of items.

The global economic slowdown, especially evident in the latest economic data from Germany, China and Japan, is widely attributed to the trade war and Brexit. Investors have been discouraged from investing in crude as the threat of recessions is scaling back the outlook for demand.

West Texas Intermediate for delivery next month dropped 1.07% to $54.64 per barrel at 11:21 am CET. Brent for settlement in October fell 1.45% to $58.62 for one barrel.

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