Trump said he would raise taxes on Chinese products

Affected by the announcement of US President Trump that he will impose 10% tariff on US $300 billion imported goods from China on September 1 and the expectation of the Fed's interest rate cut is lower than expected, the international oil price maintained its declining trend after the previous trading day in the early morning of the 1st day, with weak volatility in the market, and fell sharply in the afternoon because of Trump's tariff declaration. The price of West Texas light crude oil futures delivered in September fell by nearly 8%, the biggest drop since February 2015, and Brent crude oil futures for October delivery in Britain dropped by nearly 7%.

US President Trump said through social media on the afternoon of 1 September this year that the US will impose a 10% tariff on 300 billion US dollars imported from China. However, Trump said that he would continue to have constructive dialogue with China on a comprehensive trade agreement and that the future of China and the United States would be very bright. Trump's position further heightens market concerns about the prospects for global oil demand growth while the world's crude oil supply remains abundant. John Kilduff, a partner of Again Capital Management, said that the oil market was the biggest asset hit by the trade war, which exacerbated the deterioration of the situation. Before Trump's Twitter launch, the oil market was not calm that day. The previous day, the Federal Reserve's monetary policy stance did not support the oil market, and was hit by Trump's announcement of tariff increases. Tamas Varga, an analyst at PVM Oil Consortium, said that after the Fed cut interest rates, the market's relatively positive atmosphere for risky assets took an amazing U-turn, the dollar began to strengthen, and stocks and oil entered a pattern of sharp declines. Victor Shum, senior partner of IHS Markit, said that oil markets were well supplied and that growth in oil demand was showing signs of a global decline due to trade conflicts, Britain's de-Europeanization and other events that could weaken global economic growth and oil demand. He said there was a lot of oil, and U.S. crude oil production grew strongly. Phil Flynn, senior market analyst at PRICE Futures Group, said Monday that with solid U.S. economic data, the Federal Reserve could try to refocus market views on interest rate cuts as an adjustment in the middle of the index economic cycle. He believes that the 31-day market decline may be attributed to investors'previous advocacy of interest rate cut expectations, the market reaction may also be in line with the "buy when rumors, sell when facts" trading ideas, hedge funds saw that the Federal Reserve Chairman did not crazy interest rate cuts, began to profit, lock in profits. At the close of the day, the price of light crude oil futures for September delivery on the New York Mercantile Exchange fell by $4.63 to $53.95 a barrel, an increase of 7.9%. On the same day, London Brent crude oil futures for October delivery fell $4.55, or 6.99%, to $60.5 a barrel.