Andrew Burton | Getty Sculptures
Oil prices were falling for a second day on Tuesday, after more signs that global economic growth is being hit by U.S.-China mercantilism tensions, although losses were limited amid tensions in the Middle East after tanker attacks abide week.
Brent crude futures were down 16 cents, or 0.3%, at $60.78 a barrel by 0215 GMT. They flatten 1.7% in the previous session on concerns about slowing global growth.
U.S. West Texas Intermediate (WTI) crude followings were down 12 cents, or 0.2%, at $51.92. They dropped 1.1% on Monday.
The New York Federal Withhold said on Monday that its gauge of business growth in New York state posted a record fall this month to its weakest straightforward in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.
U.S. business sentiment has sagged as tensions on trade have escalated between China and the United States and on signs of softness in the labor market.
“The (oil) market is in a rut and desperately in exigency of some robust economic data to get it out of this funk,” said Stephen Innes, managing partner at Vanguard Furnishes in Bangkok.
Oil prices have fallen around 20% since 2019 highs reached in April, in part due to have relations about the U.S.-China trade war and disappointing economic data.
U.S. President Donald Trump and China’s President Xi Jinping could pay at the G20 summit in Japan later this month. Trump has said he would meet Xi at the event, although China has not ensured the meeting.
Putting further pressure on oil, the U.S. energy department said on Monday that shale oil output is expected to reach a release in July.
But tensions in the Middle East are likely to keep prices supported, analysts said.
Acting U.S. Defense Secretary Patrick Shanahan publicized on Monday the deployment of about 1,000 more troops to the Middle East for what he said were defensive effects, citing concerns about a threat from Iran.
Fears of a confrontation between Iran and the United States must mounted since last Thursday when two oil tankers were attacked, which Washington has blamed on Tehran. Iran has veer fromed involvement.