Oil prices slip for second day on global growth fears
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[June 18, 2019] By
LONDON (Reuters) - Oil prices fell for a
second day on Tuesday on signs that global economic growth is being hit
by the U.S.-China trade war, though losses were capped by Middle East
tensions after last week's tanker attacks.
Brent crude futures were trading 18 cents down at $60.76 a barrel by
1203 GMT. U.S. West Texas Intermediate crude futures lost 3 cents to
The New York Federal Reserve on Monday said that its gauge of business
growth in New York state posted a record fall this month to its weakest
level in more than 2-1/2 years, suggesting an abrupt contraction in
U.S. business sentiment has sagged as trade tensions have escalated
between China and the United States and on signs of softness in the
(Graphic: New York Fed Empire business survey -
Oil prices have fallen by about 20% from April's 2019 highs, partly
because of concerns over the U.S.-China trade war and disappointing
U.S. President Donald Trump and China's President Xi Jinping could meet
at the G20 summit in Japan this month. Trump has said he would meet Xi
at the event, though China has not confirmed the meeting.
Putting further pressure on oil, the U.S. energy department on Monday
said that shale oil output is expected to reach a record high in July.
Fears of a confrontation between Iran and the United States have mounted
since last Thursday's oil tanker attacks, which Washington has blamed on
Tehran. Iran has denied involvement.
"Oil prices appear unperturbed by the further escalation of the Iran
crisis," said Commerzbank's Carsten Fritsch.
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A pumpjack is seen at sunset outside Scheibenhard, near Strasbourg,
France, October 6, 2017. REUTERS/Christian Hartmann
Iran on Monday said it would breach internationally agreed curbs on its stock of
low-enriched uranium within 10 days, adding that European nations still had time
to save a landmark nuclear deal.
Acting U.S. Defense Secretary Patrick Shanahan announced on Monday the
deployment of about 1,000 more troops to the Middle East for what he said were
defensive purposes, citing concerns about a threat from Iran.
Saudi Arabian Energy Minister Khalid al-Falih on Monday said that countries need
to cooperate on keeping shipping lanes open for oil and other energy supplies to
ensure stable supplies.
He also said that Saudi exports and production are expected to remain at "about
the same level" as the past few months.
Market participants are also awaiting a meeting between the Organization of the
Petroleum Exporting Countries and other producers including Russia, a group
known as OPEC+, to decide whether to extend a supply reduction pact that ends
Russian Energy Minister Alexander Novak on Tuesday said it was too early to make
any decisions about the future of the agreement because of market uncertainties.
(Graphic: U.S., Russian, Saudi crude oil production - https://tmsnrt.rs/2QYNGAd)
(Additional reporting by Aaron Sheldrick in TOKYO; Editing by David Goodman)
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