Oil slips for second week in a row as US-China tiff keeps growing

Oil is falling for the second week in a row amid escalating trade tensions between the US and China. On Friday, prices continued their bearish trend as market players feared that the ongoing dispute between the world's two largest economies could lead to reduced fuel consumption. This has prompted many traders to switch from long to short positions, Reuters reports.

Both Brent and WTI crude saw their prices drop by more than $2 per barrel on Thursday. Analysts forecast that by the end of this week, WTI may decline by 3.8%, while Brent could be down 4%. This comes on the heels of a significant drop of 11% in the previous 7 days.

Global trade and international energy supply chains are likely to be disrupted by the conflict between the United States and China. Experts warn that Donald Trump's import tariffs and Xi Jinping's retaliatory measures could lead to slower global economic growth, further threatening future oil consumption.

Daniel Hynes, who serves as a senior commodities strategist at ANZ, indicates if the global GDP growth rate dips below 3%, there could be a 1% reduction in oil consumption.