Oil prices dip on rising supply, trade tensions

Oil prices dipped yesterday, dragged down by concerns that the Sino-US trade dispute will dent economic growth and by signs of rising global supply despite upcoming sanctions against Iran.

Front-month Brent crude oil futures were at $77.15 (Dh283.14) a barrel at 0644 GMT, down 19 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.99 a barrel, down 5 cents from their last settlement.

Oil has been caught up in broad financial market slumps this month, with stocks under pressure from the trade war between the world’s two largest economies. Prices received some support yesterday after reports that Trump thinks “a great deal” with China is possible on trade. For now, the spat between Washington and Beijing goes on. Consultancy JBC Energy said the oil price weakness was “probably driven by the wider negative market sentiment amid speculation about additional US tariffs on Chinese imports, should upcoming talks fail to produce the desired results.”

Amid a slowdown in growth, high oil prices are hurting consumers and could dent fuel demand, the executive director of International Energy Agency said yesterday.