Oil prices fell due to concerns about US-China trade war talks
Oil prices fell due to concerns about US-China trade war talks

Oil prices decline fearing US-China trade war

Oil prices fell on Tuesday as Washington put more Chinesecompanies on a blacklist, dampening hopes of a trade deal between the twocountries, although unrest in Iraq and Ecuador provided some support for crudeprices.

Earlier in the session, Brent crude and West TexasIntermediate rose more than 1%. On the settlement, Brent fell 11 cents, or 0.2%,to $58.24 a barrel, while WTI fell 12 cents, or 0.2%, to $52.63.

Investors are cautious ahead of US-China trade talks inWashington on Thursday. US President Donald Trump said a trade deal wasunlikely soon.

Bloomberg reported that Washington was moving ahead withdiscussions on possible restrictions on capital flows to China, with a focus onUS government pension fund investments.

The US Energy Information Administration cut its forecastfor global oil demand growth in 2020 by 100,000 bpd to 1.30mn bpd.

Jim Ritterbusch, president of Ritterbusch & Co., said ina note that the oil market "will be forced to focus more concisely on thedeterioration of global oil demand, while the monthly series of reports for therest of the week is likely not to ruleout a rapid price shift towards the rise".

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