Oil held a loss as an escalating U.S.-China trade war jeopardized the demand outlook, while the rising risk that geopolitical tension in the Middle East will disrupt crude flows prevented further declines.
Futures in New York edged higher after closing down 1% on Monday. The U.S. released a list of about $300 billion of Chinese goods that it’s threatened to hit with a 25% tariff after China announced retaliatory levies on about $60 billion of U.S. imports. Another oil tanker was damaged while at anchor in the United Arab Emirates, following a spate of attacks on crude carriers on Sunday, adding to an already tense situation in the Persian Gulf.
West Texas Intermediate crude for June delivery rose 10 cents, or 0.2%, to $61.14 a barrel on the New York Mercantile Exchange at 10:21 a.m. in Singapore after falling as much as 0.5% earlier. The contract closed 62 cents lower at $61.04 on Monday.
Brent for July settlement added 5 cents to $70.28 a barrel on the London-based ICE Futures Europe exchange after losing as much as 0.4% earlier. The global benchmark contract is trading at a $8.98 premium to WTI.
Source : Bloomberg