New York (CNN Business) A deepening trade war between the world's two largest economies is bad news for the oil business. Oil has now plunged 13% since closing at $66.30 a barrel a month ago, delivering a fresh reminder of the boom-to-bust nature of the oil market. However, much like the stock market, investors are coming to grips with the idea that the US-China trade war might get worse before it gets better. Business activity "slowed sharply" in May due to trade war worries, IHS Markit said in a report on Thursday. Of course, oil prices could rapidly rebound if US-China trade tensions ease and the two sides move closer toward an agreement.

Source: CNN May 23, 2019 18:09 UTC