- Prices down for second straight day
- U.S. inventories rise by 1.6 mln barrels
- China warns U.S. of consequences over Hong Kong law
LONDON/TOKYO, Nov 28 (Reuters) – Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline stocks rose and President Donald Trump signed into law a bill backing protesters in Hong Kong, fuelling tensions with China. Brent crude LCOc1 was down 26 cents, or 0.4%, at $63.80 a barrel by 1038 GMT, having dropped 0.3% on Wednesday. West Texas Intermediate crude CLc1 fell 27 cents, or 0.5%, to $57.84, after losing 0.5% in the previous session.
China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.
Investors are concerned that the move might delay further a preliminary agreement between the United States and China to put an end to their trade war that has slowed global economic growth, and consequently consumption of oil. “The approval of the Hong Kong legislation backing protesters is likely to put the trade agreement into question as China has reiterated its threat of retaliation,” said Hussein Sayed, chief market strategist at FXTM. “If investors suspect that the trade agreement is under real danger, expect to see a sharp sell-off in December. For now, investors are taking a wait-and-see approach.” Crude stockpiles in the United States swelled by 1.6 million barrels last week as production rose to a record 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information Administration said..