On Friday, oil prices are falling amid growing tensions between the United States and China, but end May with a significant increase. According to Interfax, Brent has risen in price this month by 39%, while WTI - by a record 76%.
The cost of July Brent crude futures on the London ICE Futures exchange at 8:05 Moscow time is $ 34.96 per barrel, which is $ 0.33 (0.94%) lower than the closing price of the previous session. Following the auction on Thursday, July contracts rose in price by $ 0.5 (1.6%), to $ 35.29 per barrel. July Brent contracts expire on Friday. More actively traded August futures fell $ 0.29 (0.8%), to $ 35.74 per barrel.
Futures for WTI oil for July in electronic trading on the New York Mercantile Exchange (NYMEX) by this time fell in price by $ 0.44 (1.31%) to $ 33.27 per barrel. By the close of the market on Thursday, the price of these contracts increased to $ 33.71 per barrel, up $ 0.9 (2.7%).
Traders' attention is focused on the relationship between Washington and Beijing, which have become seriously aggravated after China decided to create its own national security law for Hong Kong.
US President Donald Trump promised Friday to announce the steps Washington will take against China in response to the country's attempt to tighten control over Hong Kong. Traders fear that the States will return part of the duties for Chinese goods that have been canceled earlier, AxiCorp experts say.
"There are also questions about whether OPEC + countries will be able to maintain the current rate of production decline in the coming months," said Samsung Futures Inc., commodity market analyst Kwangrae Kim.