Oil was down on Friday morning in Asia, giving up some of its gains from the previous session.
WTI futures rose 2.7% during the previous session on optimism over the global demand recovery as countries emerged from COVID-19 lockdowns.
Investor sentiment soured due to mounting U.S.-China tensions after China’s National People’s Congress passed a draft decision to enact national security law laws in Hong Kong on Thursday. U.S. President Donald Trump will unveil his response to the laws at a press conference on Friday.
Potential U.S. actions could include trade sanctions, which would impact the demand that has slowly been recovering from the lockdowns. Demand recovery will also be compounded by some countries continuing to report new second-wave outbreaks, with the number of global COVID-19 cases approaching 6 million.