Oil up despite rising US-China tensions

Oil was up on Monday morning in Asia, gaining back some of its earlier losses.

Brent oil futures rose 0.65% to $35.36 by 12:08 AM ET (5:08 AM GMT) and WTI futures jumped 1.11% to $33.62.

Protests in Hong Kong on Sunday against national security laws formally tabled by China for both Hong Kong and Macau on Friday at the National People’s Congress ended with police firing tear gas and a water cannon in the Causeway Bay district.

US President Donald Trump vowed strong US action if China enacts the laws, with 33 Chinese companies and institutions blacklisted by the US Commerce Department on Friday.

Investor risk appetite soured over fears that the escalating tensions could continue a trade war between the two superpowers.

Tensions have mounted between the two countries as they clash over Hong Kong, Taiwan and the origins of the Covid-19 virus.

“The HK security legislation packs on a hefty amount (of) trade war risk premium,” Stephen Innes, chief market strategist at AxiCorp, told Reuters.

Innes also noted that the legislation added to market worries last week about the level of Chinese policy stimulus.

By Investing.com: https://www.investing.com/news/commodities-news/oil-up-even-amid-rising-uschina-tensions-2181690