Oil Prices Move Higher on Supply Disruptions; Trump Blocks China Mobile Deal
Published July 3, 2018
The US government blocked China Mobile from offering its telecommunication services in the US over fears that the firm posed national security risks. The Chinese state-owned enterprise boasts nearly 899 million subscribers, however, did not have enough political clout to overcome a rising protectionist tide from the Trump Administration. The move comes ahead of this week’s implementation of US tariffs on $34 billion worth of goods from China on Friday. Fresh new lows in both the Shanghai Composite and the Chinese renminbi have suggested that the Chinese economy is susceptible to US trade protectionist maneuvers.
Leftist politician Andres Manuel Lopez Obrador handily won the Mexican election on Sunday in capturing nearly 53 percent of the vote. A top aide to the new president noted that Lopez Obrador will jump-start NAFTA talks with the US and Canada.
Canada imposed a 25 percent tariff on a number of US metal products and a 10 percent broad tariff on other US consumer goods. The duties, which were imposed on Canada Day, amount to the 2017 value of Canadian metals exports affected by recent US steel tariffs.
Oil prices are moving higher this morning after supply disruptions in Libya and Canada moved US crude prices to the highest levels since 2014; Canadian production has been hindered by an outage at a major Fort McMurray oil producing facility which is likely to last until the end of July.