Reuters: Oil prices ease as trade disputes outweigh supply concerns
Oil prices dipped on Tuesday on demand concerns following the latest signs the U.S.-China trade war is dragging on the global economy, although the potential for conflicts in the Middle East offered support.
Brent crude futures were down 14 cents, or 0.2%, at $63.97 a barrel by 0524 GMT. They fell 12 cents on Monday, Reuters said.
U.S. West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session.
Oil prices are being pressured by worries about demand as the U.S.-China trade war, heading into its second year, dampens prospects for global economic growth, which affects oil demand. The countries are the world's two largest oil consumers.
"The weaker global economic outlook is keeping oil prices under downward pressure, but tensions in the Middle East are enhancing awareness to possible supply risk and should keep a floor under oil in the medium term," said Stephen Innes, managing partner at Vanguard Markets in Bangkok.
Hedge funds sold more Brent futures and options last week as concerns about the global economy trumped the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to extend output cuts.