Investing.com – The International Energy Agency (IEA), along with U.S. and Chinese trade officials, aren’t helping oil prices recover, as crude hit 2-1/2 month lows on Tuesday amid the notion the market has risen too much, too fast.
IEA chief Fatih Birol told an energy conference in Singapore that high oil prices were hurting consumers and could dent fuel demand at a time of slowing global economic activity. The IEA is the Western world’s energy watchdog.
“There are two downward pressures on global oil demand growth. One is high oil prices, and in many countries they’re directly related to consumer prices. The second one is global economic growth momentum slowing down,” Birol said.
The Trump Administration, meanwhile, upped the ante against China, by warning that it could impose billions of dollars of new tariffs by early December on all remaining Chinese goods entering the U.S. if talks next month between President Donald Trump and his counterpart Xi Jinping fail to ease the trade war between the two countries. Washington has already imposed tariffs on $250 billion worth of Chinese goods and China has responded with retaliatory duties on $110 billion worth of U.S. imports.