Bolton's Dismissal is a Bad Sign for the Oil Market
The small retreat of Chinese government that I wrote about yesterday seems to have really turned out to be that way and it was followed by more significant concessions on both sides. Trump agreed to postpone tariffs for two weeks at the request of the Chinese Deputy Prime Minister, from October 1 to October 15, and the Chinese Commerce Department said on Thursday that Chinese companies began to request purchase prices for agricultural products from the United States.
At the news briefing on Thursday in Beijing, head of the Department of Commerce Gao Feng announced that working-level groups of both countries plan to meet to prepare for high-level talks to be held in early October. It is worth noting that the postponement of the possible date for the introduction of tariffs on October 15 can be interpreted as avoidance of “an extra shock” for Chinese business, if the negotiations in early October go so well that it makes sense to cancel tariffs altogether.
Gao said Chinese companies are interested in buying American pork and soybeans. Losing the main market for US agricultural products represented a major reputational risk for Trump's protectionist policies, which he seems to be trying to not forget about.
Trump welcomed China’s decision to free some US goods from additional reciprocal tariffs, and in response announced a two-week postponement of the planned increase in tariffs on Chinese goods.
The important news also was the dismissal of the “White House warrior” Bolton on Wednesday. Trump said he made some big mistakes, hinting to an overly harsh stance on Iran and a breakdown in negotiations with North Korea. The oil market is already beginning to anticipate a weakening of Iran’s oil embargo, especially after recent rumors that Trump is going to return quotas for Iranian oil to some of its consumers. And the oil seems to be very concerned about this prospect:
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