The Trade War Is Transforming Oil Markets

The increase of US tariffs on goods imported from China in May and the Chinese response – higher tariffs on a further $60 billion of US exports to China – threaten a slowdown in the global economy. The IMF had already warned in April that trade growth would fall from 3.0% in 2018 to 2.6% this year. Leading economic indicators, which have been weak since mid-2018, point to increasing economic fragility and a heightened risk of recession amid rising signs of stress in emerging markets. Fundamental divisions The failure of US-China trade…