Oil price lower on global trade fears post G7 summit

Oil price opens the new trading week lower on concerns linked to the outlook of global trade will likely be be impacted by geopolitical wrangling at G7 summit.  China provokes the United States by banning US-manufactured micro chips.

Oil recovers after US Dollar weakens on continued debt-ceiling uncertainty as talks reopen in Washington. Oil price gaps lower at the start of the week on concerns global growth may suffer, after the world’s leading economies antagonized China at the G7 summit in Hiroshima.

World leaders discussed ‘de-risking’, or weaning themselves off an over-reliance on Chinese imports at the summit. Washington and Beijing exchanged harsh words as China banned imported memory chips from US manufacturer Micron, after failing to pass a security test.

A weakening US Dollar on debt-ceiling concerns, however, provides a counter balance that helps underpin Oil prices. At the time of writing, WTI Oil is trading in the lower $72s, specifically at $72.286 per barrel and Brent Crude Oil in the lower $76s.

Geopolitics polarizes the G7 into two competing camps – China and Russia, who are seen as threats to world prosperity and peace – and the rest, led by the United States. China provokes the US by banning imports of memory chips from US manufacturer Micron, citing security risks.