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Oil prices drop as U.S.-China trade dispute stokes demand worries

Published 07/08/2019, 01:41
Updated 07/08/2019, 01:50
© Reuters.
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By Jane Chung
SEOUL, Aug 7 (Reuters) - Oil fell on Wednesday as the
intensifying Sino-U.S. trade dispute stoked worries over demand,
although a drop in U.S. crude inventories offered some support
to prices.
International benchmark Brent crude futures LCOc1 were at
$58.70 a barrel by 0039 GMT, down 24 cents, or 0.41%, from their
previous settlement and trading near seven-month lows.
West Texas Intermediate (WTI) crude CLc1 futures fell 20
cents, or 0.37%, from their last close to $53.43 per barrel.
"Crude oil prices remained under pressure as investors
grappled with the impact of the trade conflict," ANZ bank said
in a note.
Brent prices have plunged more than 9% in the past week
after U.S. President Donald Trump said he would slap a 10%
tariff on a further $300 billion in Chinese imports starting on
Sept. 1, sending global equity markets into a tailspin.
But Trump on Tuesday dismissed fears the trade row with
China could be drawn out.
Meanwhile, Saudi Arabia Energy Minister Khalid Al-Falih and
U.S. Energy Secretary Rick Perry on Tuesday said both sides
expressed concern over threats targeting freedom of maritime
traffic in the Arabian Gulf as they met in Washington.
Tensions in the Middle East have heightened in the wake of
attacks on tankers and U.S. drones, raising concerns over
passing through the Straight of Hormuz, a key shipping artery of
global oil trade.
Elsewhere, data indicating a larger-than-expected drop in
U.S. crude stocks offered some support to oil prices.
U.S. crude inventories fell by 3.4 million barrels in the
week ended Aug.2 to 439.6 million barrels, compared with analyst
expectations for a decrease of 2.8 million barrels. API/S
Official data from the government's Energy Information
Administration (EIA) is due later on Wednesday.


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