Oil prices dipped for a second day running Tuesday, with rising trade tensions between the world’s two largest economies and conflicting signals about global supply trends weighing on the commodity.
Global benchmark Brent crude oil fell 65 cents or 0.84 percent to $76.69 a barrel, while U.S. crude oil futures traded down 0.73 percent at $66.55 a barrel.
Investors remained concerned that the mounting U.S.-China trade conflict will dampen global growth at a time when upcoming U.S. sanctions on Iranian oil are expected to tighten global supplies.
U.S. President Donald Trump said he thinks there will be “a great deal” with China on trade, but warned of more tariffs if talks next month fail to ease the trade war.
The world’s biggest miner BHP Billiton, which also has oil and gas assets, has cut its forecast for global growth in 2019 and 2020, citing risks from the unresolved U.S.-China trade dispute.
Meanwhile, high oil prices are hurting consumers and could dent fuel demand, International Energy Agency Executive Director Fatih Biro said.
Traders also remained concerned over signs of rising supply from top producers, with Saudi Arabia and Russia both indicating they will lift output from September through December.