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Oil Falters as Trade Tension Counters Threat From Tropical Storm

  • More than half of Gulf of Mexico crude output has been halted
  • Trump says China isn’t living up to promises on crop purchases
Operations At Ukrnafta PJSC's Oil And Gas Field Processing Site
Photographer: Vincent Mundy/Bloomberg
Updated on

Oil’s rally stalled as traders weighed the threat Tropical Storm Barry poses to refineries on the U.S. Gulf Coast against prospects of an ongoing trade war and OPEC’s concerns over global demand.

Futures slipped for the first time in six sessions on Thursday, closing 0.4% lower in New York. U.S. President Donald Trump tweeted that China wasn’t living up to promises to buy more American farm products. Meanwhile, more than half the oil output in the U.S. sector of the Gulf of Mexico was shuttered as companies evacuated deep-water platforms. Stocks also erased gains.