Brent nears $72 on US-Iran tensions

REUTERS

OIL futures were flat on Tuesday as the prospect of US-Iran tensions disrupting supply was offset by concerns that a drawn-out trade war between Washington and Beijing would weigh on crude demand.

Brent crude futures, the international benchmark for oil prices, shed 1 cent to $71.96 a barrel. US West Texas Intermediate (WTI) crude futures were down 13 cents to $62.97 a barrel, ahead of the front month contract for June delivery going off the board on Tuesday. The July contract was trading at $63.08 a barrel.

“The situation with China is as bearish as the Iran situation is bullish. That’s why I think we continue to be here in a stalemate,” said John Kilduff, a partner at Again Capital LLC in New York.

Iraq’s oil minister said a growing conflict in the Middle East poses a challenge to the stability of crude oil markets and said the Organization of the Petroleum Exporting Countries must pave the way for a “new agreement” to help stability.

Tensions have mounted during an already tight market as OPEC, Russia and other producers have withheld supply to support prices since the start of the year in a six-month agreement.

Saudi Arabia on Sunday indicated there was consensus among OPEC and allied oil producers to continue limiting supplies.