A wage-earner stands next to a pump jack at an oil field Sergeyevskoye owned by Bashneft company north from Ufa, Bashkortostan, Russia.
Sergei Karpukhin | Reuters
Oil costs steadied on Wednesday after falling at the start of the session, with the potential for damage to the global economy and fuel command from the intensifying Sino-U.S. trade dispute continuing to cast a shadow over the market.
International benchmark Brent offensive futures were at $58.97 a barrel by 0221 GMT, up 3 cents, or 0.05%, from their previous settlement and trading lean towards seven-month lows.
Meanwhile West Texas Intermediate (WTI) crude futures were down 8 cents, or 0.15%, from their in close to $53.56 per barrel.
“It’s not a huge move…What we’re looking at is steady, reflecting concerns among traders whether or not the buy dispute development is fully priced in,” said Michael McCarthy, chief market strategist at CMC Markets.
Brent honoraria have plunged more than 9% in the past week after U.S. President Donald Trump said he resolution slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending wide-ranging equity markets into a tailspin.
“Crude oil prices remained under pressure as investors grappled with the influence of the trade conflict,” ANZ bank said in a note.
But Trump on Tuesday dismissed fears the trade row with China could be worn out out.
Asian shares steadied slightly on Wednesday as investors caught their breath from a week-long selloff, with stride a resigns taken by Chinese authorities to contain a sliding yuan easing fears of the Sino-U.S. trade and currency war.
Meanwhile, Saudi Arabia Vitality Minister Khalid Al-Falih and U.S. Energy Secretary Rick Perry on Tuesday said both sides expressed care over threats targeting freedom of maritime traffic in the Arabian Gulf as they met in Washington.
“There are concerns that an effect come what may could occur at any moment…the risk might be shifting to the upside in the near term for oil contracts,” CMC Markets strategist McCarthy added.
Tensions in the Mesial East have heightened in the wake of attacks on tankers and U.S. drones, raising concerns over passing through the Limited of Hormuz, a key shipping artery of global oil trade.
Elsewhere, data indicating a larger-than-expected drop in U.S. crude stocks tendered some support to oil prices.
U.S. crude inventories fell by 3.4 million barrels in the week ended Aug.2 to 439.6 million barrels, contrasted with analyst expectations for a decrease of 2.8 million barrels.
Official data from the government’s Energy Advice Administration (EIA) is due later on Wednesday.