Oil Exploration Falls as Trump Escalates U.S.-China Trade War

according to Rig fleet across American oil fields shrinks by two this weekWorkers on a drilling rig in the Permian basin outside of Midland, Texas. American oil companies scaled back drilling this week after U.S. President Donald Trump escalated his administration's trade war with China. U.S. working oil rigs fell by two this week to 859, according to data from Baker Hughes. The tit-for-tat U.S.-China trade dispute escalated this week as Trump threatened to increase levies on billions of dollars in Chinese goods, and the Asian giant responded in kind. Oil output in the U.S. fell by 100,000 barrels a day to 10.9 million last week, according to the Energy Information Administration.

Chinese Company Suspends Buying US Oil Amid Trade War – Reports

The trade row between Beijing and Washington escalated in April when the US slapped 25- and 10-percent tariffs on steel and aluminum imports, respectively, from China. The Asian nation has hit back by slapping reciprocal tariffs on a number of US imports. Unipec, the trading arm of the state-run Chinese oil corporation Sinopec, has suspended crude oil imports from the US due to growing trade tensions between the two countries, Reuters cited sources familiar with the situation as saying Friday. READ MORE: 'Trade War' Is a Reality: French Finance Minister Urges US to Recall TariffsThe move comes as Chinese customers start to reduce purchases of US oil in order to avoid a possible import tariff that Beijing threatens to slap on Washington amid the escalating US-Chinese trade spat. READ MORE: New Trade Pact: What Answer do Asian Economies Have to Trump's Tariff War?

Oil Prices Mixed On Libya Supply, Trade Concerns

referring to Oil prices ended the day mixed Thursday after wavering between gains and losses on varying supply signals. Global prices rebounded after a steep decline on Wednesday, when crude tumbled amid concern over resurgent Libyan supply and the U.S.-China trade dispute. Libya's state-run National Oil Corp. lifted the force majeure on eastern oil ports that had kept the country's crude off global markets amid continued civil war. Analysts estimated that those ports could contribute approximately 700,000 barrels of oil a day to the global market. AdvertisementThe global oil-market supply backdrop also remains constructive, analysts said, with crude prices trading near more-than-three-year highs earlier in the week.

collected by :Frank Ithan