Oil value fell nearly 1% on Monday after comments from a U.S. official fed concerns surrounding the U.S.-China trade battle, adding to worries that a slowing global economy would cut back demand for oil.
Brent crude futures dropped 46 cents, or 0.8%, to settle at $58.96 per barrel. U.S. West Texas Intermediate crude futures fell 47 cents, or 0.9%, to settle at $53.31per barrel.
Though President Trump has said he would like to sign an accord when he meets his Chinese equivalent at November’s APEC summit, the U.S. commerce secretary said an initial trade agreement does not need to be finalized in November.
U.S. Trade Representative Robert Lighthizer told journalists that the governments’ goal remains to be to finish part one by the time the APEC conferences happen in Chile on Nov. 16 and 17. He added there are issues to resolve.
Including to rows, China is seeking $2.4 billion in retaliatory penalties against the U.S. for non-compliance with a WTO judgment in a tariff case dating back to President Barack Obama-era, a document confirmed.
On the supply side, Russia, the world’s second-prominent oil-producing country, stated on Sunday it didn’t fulfill its supply reduction commitment in September due to a rise in natural gas condensate output ahead of winter.
The Organization of the Petroleum Exporting Countries, Russia, and other associates, a coalition known as OPEC+, agreed in December to pare supply by 1.2 million barrels per day (bpd).
“Russia aims to fully comply with the agreed output cut in October, although it’s reasonable to doubt whether this can truly be achieved,” Commerzbank analyst Carsten Fritsch stated.