Oil prices fell on Thursday as investors worried about slower crude demand if the United States and China fail to reach a trade deal, resulting in higher U.S. tariffs on Chinese imports that could hit economic growth, Trend reports citing Reuters.
The trade dispute between the world’s two biggest economies and a sharp drop in global equity markets outweighed geopolitical tensions and supply cuts that have lowered global supplies from Latin America, Africa and the Middle East.
Brent crude oil futures fell 23 cents in seesaw trade to $70.14 a barrel by 11:50 a.m. CST, headed for their second straight weekly loss. U.S. West Texas Intermediate (WTI) crude futures fell 46 cents to $61.66 per barrel.
The row has already dragged on economic growth in Asia and a breakdown in Sino-American negotiations could call global crude demand forecasts into question, said John Kilduff, a partner at Again Capital Management LLC.
The U.S. Energy Information Administration expects global oil demand to rise by 1.4 million barrels per day (bpd) this year.