2019.05.2315:18:00UTC+00Oil Futures Plunge To 2-month Closing Low

Crude oil futures recorded their biggest single-session decline in 2019 and closed at a more than 2-month low on Thursday as concerns over a likely drop in energy demand weighed on the commodity.

Recent comments by U.S. Treasury Secretary Steven Mnuchin and Chinese Commerce Ministry spokesperson Gao Feng suggest that the trade war between the two largest economies of the world is unlikely to end anytime soon.

Disappointing data out of Germany, a contraction in manufacturing activity in Japan and the recent data from the Energy Information Administration that showed a bigger than expected increase in U.S. crude stockpiles last week too contributed to oil's plunge.

West Texas Intermediate crude oil futures for June ended down $3.51, or 5.7%, at $57.91 a barrel, the lowest settlement since March 12.

On Wednesday, crude oil futures for June ended with a loss of $1.71, or 2.7%, at $61.42 a barrel.

Brent crude oil futures were down by about $3.40 or 4.7%, at $67.63 a barrel around mid afternoon today.

According to the data released by the Energy Information Administration on Wednesday, crude inventories in the U.S. rose as much as 4.7 million barrels last week, as against expectations for a drop of about 600,000 barrels.

The increase in commercial inventories came on the back of planned sales of U.S. strategic petroleum reserves (SPR) into the commercial market.

U.S. Treasury Secretary Steven Mnuchin said earlier this week that U.S. has no plans to go to Beijing to resume trade negotiations have added to fears that the trade dispute between the world's two largest economies is unlikely to end anytime soon.

Chinese Commerce Ministry spokesman Gao Feng reportedly said in a briefing today that the Trump administration must "show sincerity and correct their wrong actions" if the U.S. wants trade talks to continue.

"Negotiations can only continue on the basis of equality and mutual respect," Gao said, noting that China is closely monitoring developments and preparing a necessary response.