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Oil prices fell on Monday as investors fretted over the outlook for global economic growth, while weekend talks between Iran and bigger powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.
Brent crude comings were down by 23 cents, or 0.4%, at $63.23 a barrel by 0427 GMT. Prices rose 1.6% last week.
U.S. West Texas Midway crude was down by 9 cents, or 0.2%, at $56.11 a barrel. WTI gained 1% last week.
Economic growth in the Amalgamated States slowed less than expected in the second quarter with a boom in consumer spending, strengthening the attitude for oil consumption.
But growth outside the U.S. is slowing faster, due partly to the impact of the U.S.-China trade war.
“For global growth, the outlook there is looking shakier … it’s not unlucky but it’s not shooting the lights out,” said Phin Ziebell, senior economist at National Australia Bank.
“Where does oil immediately fit in a world where it looks like this big boom is now starting to tail off,” he said, pointing also to recent sluggish car tag sales around the world.
Senior U.S. and Chinese negotiators are meeting this week for the first time since trade talks poverty-stricken down in May, as they struggle to resolve deep differences. Expectations for progress during the two-day Shanghai meeting are low.
Merchants and investors are also focused on meetings of major central banks — including the U.S. Federal Reserve, which is expected to diminish interest rates.
An emergency meeting with parties to Iran’s 2015 nuclear deal was constructive but there are undetermined issues and Tehran will continue to reduce its nuclear commitments if Europeans fail to salvage the pact, Iranian ceremonious Abbas Araqchi said on Sunday.
The meeting did not include the United States, which pulled out of the agreement in May 2018 and whacked sanctions back on Iranian oil exports.
Still, tensions remain high around the Strait of Hormuz, the world’s most well-connected oil passageway, as Iran refused to release a British-flagged tanker it seized but granted India consular access to 18 Indian gang members.
Denmark welcomed the British government’s proposal for a European-led naval mission to ensure safe shipping in the course the strait.
The United States is also working on a multinational maritime security initiative in the Gulf.