Oil can show the biggest slump in almost five months as growing trade tension between the US and China made investors worry, and Libya is planning to raise output, Bloomberg reports.

Futures in New York fell 4,8% this week after President Trump threatened to impose tariffs on almost half of import from China to the US. Besides, Libya is ready to start key oil field that was closed since February.

Price jumped to three-year high in recent weeks due to threat of US sanctions against Iran and general concern over sufficiency of supply at the market.

According to opinion of analytics, trade tension might have long-term effect on oil market, since demand will be reduced gradually. However, supply restrictions will have immediate effect on the market.

WTI oil with August delivery costs $70,29 a barrel today. Brent oil with September delivery declined to $74,08 a barrel. Prices fell 3,9% this week.

Futures in Shanghai are traded at 490 yuan per barrel. This week they lost 0,7%.

There are signs that OPEC already returned to its export levels observed before 2016, which means that three are very little spare capacities left.