Oil slips as trade dispute casts a shadow over demand outlook

Beijing — Global oil prices eased in early Asian trading on Monday on concern that the US is poised to impose additional tariffs on China, outweighing supply fears from upcoming sanctions on Iran.

Brent crude oil futures dipped 16c, or 0.2% to $77.93 a barrel by 12.35am GMT.

US West Texas Intermediate (WTI) futures fell 20c or 0.3%, to $68.79 a barrel.

“The market’s expectation of shortages has cooled after data from last week showed increases in supplies, while investors have lowered the outlook for oil demand,” said Wang Xiao, head of crude research with Guotai Junan Futures.

US President Donald Trump is likely to announce new tariffs on about $200bn on Chinese imports as early as Monday, a senior administration official told Reuters on Saturday.

The escalating trade row is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from upcoming US sanctions on Iran over its nuclear programme.

Refiners in India, Iran’s second largest crude buyer will cut their monthly crude loadings from Iran for September and October by nearly half from earlier this year.

Also weighing on oil prices, US drillers added two oil rigs in the week to December 1, bringing the total count up to 749, the highest since September, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.

Reuters