Something good is coming out of the trade war (if you think lower gas prices that might lead to more driving is a good thing):
At $2.59, the national gas price average is poised to be potentially the cheapest Labor Day weekend average in three years. Today’s average is already nearly a quarter cheaper than during last year’s holiday ($2.83) and four cents cheaper than 2017’s Labor Day ($2.63).
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At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $1.15 to settle at $54.17. Crude prices strengthened after the EIA revealed that total domestic crude inventories fell by 2.7 million bbl. Then on Friday, crude oil prices took a downward turn as a result of continued trade tensions between the U.S. and China. Reuters reported that oil prices fell more than 2% on Friday after China unveiled retaliatory tariffs against $75 billion worth of U.S. goods. In response, President Trump tweeted that he would raise tariffs on $250 billion in Chinese goods from 25 to 30 percent on October 1. He also added that a tariff announced earlier this year and scheduled to go into effect on September 1 would now be raised to 15 percent. Market watchers will keep a close eye on U.S.-China trade talks and the impact increasing tariff costs could have on global crude oil demand. If the trade tension between the countries continues, crude prices will likely decline further.
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