Oil prices drop as demand concerns rise over US-China trade war risks

Crude prices continued falling on Wednesday, dragged down by fears of slowing international progress from the US-Sino trade war. US President Donald Trump’s threats to put tariffs on Mexican imports have added to concerns.

Brent futures have been down 27 cents, or 0.four %, at $61.70 a barrel as of 9:20am GMT. US West Texas Intermediate (WTI) crude fell 0.9 %, to $52.98 a barrel. The US benchmark closed 0.four % increased on Tuesday.

Oil was hovering on the sting of a bear market after falling nearly 20 % from a peak in late April over US trade coverage fears that the worldwide financial system is headed for a pointy slowdown.

“Markets are bearish with the outlook for slowing progress in international crude demand, as properly as rising US manufacturing resulting in a glut,” Miyoko Nakashima, a senior strategist at Mizuho Securities in Tokyo advised Bloomberg.

Even if the Organization of the Petroleum Exporting Countries (OPEC) cuts output additional, WTI crude futures could solely rise to about $60 a barrel as the trade conflicts will restrict demand progress, she stated.

To forestall oversupply and prop up the market, OPEC, along with allies together with Russia, has been withholding manufacturing for the reason that begin of the 12 months. The group plans to fulfill later this month or in early July to resolve whether or not to proceed to curb provide.