Oil down on demand recovery warnings and Hong Kong protests

Oil was down on Wednesday morning in Asia on the back of analyst warnings over the fragile demand recovery.

Brent oil futures were down 0.17% to $36.11 by 12:40 AM ET (5:40 AM GMT) and WTI futures fell 0.32% to $34.24 as investors retreated from the black liquid.

The warnings came as the United States heads into its peak demand season. Some states have reopened after months-long lockdowns and New York City is expected to reopen in June.

“Early estimates suggest gasoline demand is down by as much as 30% from last year as people stay close to home,” ANZ Research said in a note.

Investor sentiment was further soured by rising US-China tensions.

US President Donald Trump will unveil the US reaction to China’s national security laws for Hong Kong and Macau, with a day of protests planned in Hong Kong.

Trump’s economic adviser Larry Kudlow warned that China was making “a big mistake” with national security legislation on Hong Kong.

In return, China threatened to retaliate against any US actions, which could include sanctions.

By Investing.com: https://staging.theenergyyear.com/wp-admin/post-new.php?post_type=news