Oil prices gave up early gains and declined on Tuesday amid uncertainty fueled by rising trade tensions between the United States and China, which could dampen global fuel demand.
اضافة اعلان
Brent crude futures fell by 28 cents, or 0.4%, to $63.04 a barrel as of 06:30 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 23 cents, or 0.4%, to $59.26 a barrel.
In the previous session, Brent settled up 0.9%, and WTI rose 1%.
Suvro Sarkar, head of energy sector research at DBS Bank, said:
“While working-level talks between the two sides continue, China has vowed to ‘fight to the end’ if a confrontation erupts. Oil markets are sensitive to such rhetoric from either side, though we expect prices to remain range-bound in the near term.”
U.S. Treasury Secretary Scott Bessent said Monday that President Donald Trump remains committed to meeting Chinese President Xi Jinping in South Korea later this month, as both countries seek to ease tensions stemming from tariff threats and export restrictions.
However, recent developments — including Beijing tightening controls on rare earth exports and Trump threatening 100% tariffs and new software export curbs starting Nov. 1 — have shaken market confidence.
China also announced sanctions on five U.S.-linked subsidiaries of South Korea’s Hanwha Ocean shipbuilding group, while both Washington and Beijing began imposing additional port fees on shipping firms transporting everything from holiday toys to crude oil.
Earlier, Trump cast doubt on the potential meeting with Xi at the APEC Summit in South Korea from Oct. 30 to Nov. 1, writing on his Truth Social platform:
“It now seems there’s no reason to do that.”
Meanwhile, the U.S. front-month crude futures contract ended Monday trading at its smallest premium since January 2024 compared to the seventh-month contract, as OPEC+ supply increases and seasonal refinery maintenance in the U.S. pressured near-term demand.
There are also signs that traders are earning smaller profits from spot oil sales due to ample short-term supply.
In its monthly report issued Monday, OPEC and its allies including Russia said the oil market supply deficit will narrow in 2026 as the broader OPEC+ coalition continues with planned production hikes.
