Oil Falls on US-China Trade Concerns

Oil prices fell on Tuesday as Washington’s blacklisting of more Chinese companies dampened hopes for a trade deal between the two countries, though unrest in Iraq and Ecuador lent some support to crude prices.

Brent crude LCOc1 fell 77 cents, or 1.3% to $57.58 a barrel by 1157 GMT.

West Texas Intermediate crude CLc1 was at $51.95, down 80 cents or 1.5%. Both had risen almost 1% earlier in the day.

Investors are treading cautiously before U.S.-China trade talks that take place in Washington on Thursday, although prospects for progress dimmed after President Donald Trump said a quick trade deal was unlikely.

“The market’s focus remains on trade tensions and oil demand concerns, ignoring the elevated geopolitical tensions in the Middle East and lower OPEC production in September. Growing recession risks have capped the upside of oil prices,” UBS oil analyst Giovanni Staunovo said.

Hedge funds sold petroleum futures and options for a second week running as a price bounce after attacks last month on Saudi oil facilities evaporated, and attention shifted to a deteriorating global economy.

via Reuters

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