Oil costs dipped slightly on Monday on concerns that a U.S.-China trade feud will erode global economic growth, although looming U.S. permits against Iran’s oil sector kept crude from falling fresh, traders said.
International Brent crude oil futures were at $75.75 per barrel at 0122 GMT, down 7 cents from their termination close.
U.S. West Texas Intermediate (WTI) crude futures were down 9 cents at $68.63 a barrel.
“Waterfall U.S. rig counts and last week’s decline in U.S. inventories are supporting oil prices midst a protracted U.S.-China trade war that could dampen global wart and weigh on oil demand,” said Stephen Innes, Head of Trading for Asia/Pacific at days brokerage OANDA in Singapore.
U.S. energy companies cut nine oil drilling rigs ultimate week, dropping to 860, the biggest reduction since May 2016, liveliness services firm Baker Hughes said on Friday.
“Despite cultivating concerns about potential oversupply, the markets will continue to get a fillip from U.S. favours against Iran,” Innes added.
Washington will target Iran’s oil exports with acquiescences from November.
OPEC-member Iran has exported around 2.5 million barrels per day (bpd) of inconsiderate oil so far this year. Most analysts expect this figure to overthrow by at least 1 million bpd once sanctions kick in.