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Decline in the Oil Price Is 70% Trade War, 30% Supply

Trend likely to continue next year.

Decline in the Oil Price Is 70% Trade War, 30% Supply
Shipping containers sit stacked on a cargo ship docked at the Port of Houston Bayport Container Terminal in Pasadena, Texas, U.S. (Photographer: Loren Elliott/Bloomberg)  

(Bloomberg) --

Decline in the Oil Price Is 70% Trade War, 30% Supply

Brent crude has fallen by a fifth since April. Bloomberg Economics estimates that weak demand -- linked to the impact of the trade war -- accounts for 70% of the decline. Abundant supply is responsible for the rest. This trend is likely to continue next year, posing a dilemma for the OPEC+ group of oil producers.

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