Oil Steady on Oversupply Expectations, Worsening Trade War Outlook
Oil steadied after a modest decline on Tuesday as oversupply expectations and a trade war between the world’s two largest economies weighed on the demand outlook.
West Texas Intermediate crude futures were trading above $61 a barrel, with Brent crude closing near $65 in the previous session. The International Energy Agency on Tuesday cut its forecast for global oil consumption this year and next as trade tensions escalate. The supply build is likely more than enough to meet consumption, it said in a monthly report.
Crude prices remain near four-year lows, after a sharp drop earlier this month caused by an onslaught of tariffs and counter-charges between the U.S. and its biggest trading partners including China. Initial panic in broader financial markets has given way to a fragile calm for now, with traders in U.S. Treasury bonds — among the assets most exposed to tariff moves — moving to neutral.
WTI for May delivery dipped 0.1% to $61.30 a barrel at 7:21 a.m. in Singapore.
Brent for June settlement closed 0.3% lower at $64.67 a barrel on Tuesday
Source: Bloomberg
