Oil prices edge up, but U.S.-China trade tensions cap gains

By Trend

Oil prices inched higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China, Trend reports citing Reuters.

Brent crude futures were at $70.27 a barrel at 0104 GMT, up 6 cents, or 0.1%, from their last close. Brent ended the previous session little changed.

U.S. West Texas Intermediate (WTI) crude futures were at $61.17 per barrel, up 12 cents, or 0.2%, from their previous settlement. WTI closed the last session steady on the day.

Analysts said the U.S.-China trade war was overshadowing the market, though market fundamentals provided some support.

“A full-blown trade war would have lasting consequences on global growth, seriously limiting the upside for energy demand. Disruptions have balanced the market, but lower demand and rising U.S. production could make for a quick reversal,” said Alfonso Esparza, senior market analyst, OANDA.