Oil Holds Losses on Escalating Trade War and U.S. Inventory Risk
Oil held losses near $67 a barrel on speculation that an escalating trade dispute between the U.S. and China will dampen global growth at a time when American crude inventories are growing.
Futures in New York were little changed, after a 0.8 percent decline on Monday. The U.S. is said to prepare another round of tariffs on all remaining Chinese imports if talks between the presidents of the two countries fail to ease trade friction. Meanwhile, American crude stockpiles are forecast to have risen for a sixth straight week.
Crude has retreated more than 8 percent this month, the worst monthly decline since July 2016. While ongoing trade tensions between the world’s two largest economies stoke concerns over global energy demand, traders continue to watch how much Iranian supply will be taken out of the market when U.S. sanctions hit early next month. Meanwhile, OPEC is likely to keep output policy steady when it meets in December, Nigeria’s oil minister said.