Oil prices slip two per cent after China steps up trade war with the US

Oil prices have fallen around two per cent today after global stock markets were rocked by China's decision to slap retaliatory tariffs on US goods.

China today confirmed a 25 per cent levy on $50bn (£36bn) worth of US goods, including vehicles and agricultural products like soybeans, in response to US President Donald Trump's planned tariffs on on Chinese goods.

"It would appear that gloves are off in relation to the trade war between the two largest economies in the world. Dealers will be half expecting a retaliation from President Trump," said David Madden, market analyst at CMC Markets UK.

Brent crude futures were down 1.81 per cent at $66.89 per barrel at the time of writing, while the US benchmark West Texas Intermediate (WTI) was down 1.89 per cent at $62.31 per barrel.

Data from the American Petroleum Institute yesterday was mixed, though it said crude inventories had fallen by 3.28m last week, which was better than expected. Official data from the Energy Information Administration (EIA) will be released later today.

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