Crude oil futures failed to hold early gains and ended lower on Monday despite some concerns about supply shortage.
Crude oil prices edged higher early on in the session amid speculation about a likely drop in oil supply after the U.S. President Donald Trump warned Iranian President Hassan Rouhani over the weekend that Iran would suffer the consequences, if it ever threatened the U.S. again, after Rouhani commented that U.S.’ hostile policies would lead to “the mother of all wars.”
Meanwhile, the finance ministers and central bank governors from the G20 warned about increased risks to global growth. Global GDP growth has been less synchronized recently amid an increase in downside risks, the finance leaders said in a statement.
Crude oil futures for September delivery ended down $0.37 or 0.5% at $67.89 a barrel on the New York Mercantile Exchange, after rising to a high of $69.30 intraday.
On Friday, crude oil futures for August delivery ended up $0.70 or 1%, at $69.46 a barrel, after touching a low of $67.80.
Meanwhile, natural gas for September were down $0.037 or 1.36% at $2.691 per million btu.
Oil’s rise on Friday was due to rising concerns about U.S. – China trade war after Donald Trump indicated at imposing tariffs on over $500 billion worth of Chinese goods to the U.S. in the event of China failing to back down on its trade policies.
Saudi Arabia’s governor to the Organization of the Petroleum Exporting Countries said recently that crude exports from the kingdom may drop by around 100,000 barrels a day in August, as the country wants to ensure there is no
oversupply in the market.