Crude Prices Plunge as US-China Trade Tensions Escalate

Core Insights - Crude oil and gasoline prices experienced significant declines, with crude reaching a 5-month low and gasoline hitting a 4.5-year low due to renewed trade tensions between the US and China, particularly following President Trump's tariff threats [2] Group 1: Price Movements - November WTI crude oil closed down by $2.61 (-4.24%) and November RBOB gasoline down by $0.0622 (-3.30%) [1] - Crude prices fell sharply on Friday, influenced by stock market sell-offs linked to trade tensions with China [2] Group 2: Market Influences - The decline in crude prices was exacerbated by Saudi Aramco's decision to maintain its oil price for Asian customers for November delivery, indicating weak energy demand [4] - OPEC+ agreed to a modest increase of 137,000 barrels per day (bpd) in crude production starting in November, which was below market expectations [5] - Reduced crude production in Russia, due to Ukrainian attacks on refineries, has limited Russia's export capabilities, providing some support for oil prices [6] Group 3: Geopolitical Factors - The cooling tensions in the Middle East, following a ceasefire agreement between Israel and Hamas, contributed to the pressure on crude prices by reducing the risk of supply disruptions [3]