WTI slumps over 3.50% to fresh three-month lows sub-$38.50

• WTI sold-off amid a renewed risk-aversion wave.  
• Rising US-China tensions, demand concerns weigh on oil.
• Focus shifts to US weekly crude stocks data.

Following a temporary reversal seen on Monday, WTI (futures on Nymex) resumes its downside momentum and hits fresh three-month lows just above $38, shedding nearly 4% so far.

WTI sellers returned along with the risk-aversion on the European markets, as escalating US-China tensions combined with growing coronavirus cases across Europe dent the appetite for riskier assets.

Earlier this Tuesday, the NY Times reported that the US is considering a ban on some of the cotton products from China’s Xinxiang province. Meanwhile, President Donald Trump said he plans to end America’s reliance on the country.

more to come ...