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Oil prices stay close to lowest in two weeks pressured by possible trade war

Oil prices climbed back a bit following yesterday’s selloff, though they still hold around the minimums of two weeks pressured by possible aggravation of trade dispute between China and the United States.

Futures regained 0.3% in NY after Monday’s drop of 3%. The recent development in a trade war is China’s new tariffs on $3 bln worth U.S. products, which makes investors refrain from riskier assets.

U.S. WTI futures rose to $63.19 per barrel, 18 cents up from the last settlement. On Monday price slumped by $1.93 to $63.01, the biggest fall since February 9.

Brent futures attained $67.77, gaining 13 cents.

On Monday the fall was $1.70, coming down to $67.64. Oil prices rose by more than 5% in March mainly due to concerns over possible abolition of the nuclear deal with Iran by the U.S.

At the same time investors are wary that President Trump’s efforts to protect home producers might force China to impose new tariffs to retaliate, which could damage global economic growth. One more factor limiting price increases is the soaring oil production in the U.S., which has been over 10 mln barrels a day for eight weeks in a row.

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