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Oil mixed as trade fears weigh despite tight supply

Oil

HOUSTON (Reuters) – Oil prices were mixed on Tuesday after a long-holiday weekend as investors feared the U.S.-China trade conflict will weigh on global demand despite tightened supplies.

Brent crude fell 41 cents, or 0.6%, to $69.70 a barrel by 10:04 a.m. CDT (1504 GMT), with prices repeatedly veering above and below the $70-mark in choppy trading.

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U.S. West Texas Intermediate (WTI) futures were trading at $58.91, up 28 cents, or 0.5%, from their close on Friday.

WTI, trading for the first time since Friday after the long Memorial Day holiday weekend, was catching up with Brent which settled about 2% higher on Monday.

Investors remained concerned the escalating trade war between the United States and China could hit the global economy and dent fuel consumption.

Brent futures last week registered a decline of 4.5% and WTI slid by 6.4% for its biggest weekly loss since December.

The U.S.-China trade war isn’t getting any better and it’s really starting to weigh on growth ,Demand for crude could fall.

said Bill Baruch, president of Blue Line Futures in Chicago.

At the same time, global supplies have tightened because of supply cuts by the Organization of the Petroleum Exporting Countries and its allies since the start of the year, with political tensions in the Middle East adding to the upward pressure on prices.

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