LONDON: Oil prices rebounded slightly today from big falls in recent sessions, but Brent crude remained near seven-month lows around US$60 (RM251) a barrel due to escalating trade tensions between China and the United States.
Brent prices have lost more than 9% in the past week, with US President Donald Trump vowing to impose new tariffs on Chinese imports and China making further moves against US agricultural cargoes.
The US also responded to a decline in China’s yuan on Monday by branding the country a currency manipulator.
International benchmark Brent futures were up 18 cents at US$59.99 a barrel by 1005 GMT, having dipped earlier in the session to their lowest since Jan 14 at US$59.07.
West Texas Intermediate crude futures rose 25 cents to US$54.94 per barrel.
“This morning’s slight price recovery is hardly worthy of mention. Concerns about demand and the escalating trade conflict are still keeping the oil market in a strangle-hold,” Commerzbank analyst Carsten Fritsch said in a note.
“As far as the oil market is concerned, there are two key questions: ‘Why should China carry on buying US crude oil?’ and ‘Why should China continue to adhere to the US sanctions when it comes to buying Iranian oil?’"
Global equities hit a two-month low and Brent fell more than 3% on Monday as traders worried the dispute between the world's two biggest oil buyers would dent demand, helping to prompt yester-day's short-covering.
“It’s difficult for oil to hold (up) when you have such moves in equities,” Petromatrix analyst Olivier Jakob said.
Oil prices could find some support later today, with a Reuters poll showing US crude oil inventories were expected to have fallen for an eighth consecutive week.
source https://www.thesundaily.my/business/oil-prices-up-slightly-but-us-china-trade-tensions-drag-KC1224369
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