Oil prices fall on rising supply, trade tensions

Oil prices fell on Tuesday, depressed by concerns that the U.S.-China trade dispute will dent economic growth and by signs of rising global supply despite upcoming sanctions against Iran.

Benchmark Brent crude oil LCOc1 fell $1.05 a barrel to a low of $76.29 before recovering slightly to around $76.44, down 90 cents, by 1205 GMT. U.S. light crude CLc1 was 60 cents lower at $66.44.

Both contracts have recovered some ground over the last week but are around $10 a barrel below four-year highs reached in the first week of October.

“Positives remain in short supply for oil bulls as a softening demand backdrop continues to underpin selling pressures,” said Stephen Brennock, analyst at brokerage PVM Oil.

Oil has been caught in the global financial market slump this month, with equities under pressure from the trade war between the world’s two largest economies.

Financial markets found some support on Tuesday from reports that U.S. President Donald Trump thinks “a great deal” with China is possible on trade.

But for now the dispute between Washington and Beijing goes on and looks set to curb global economic growth and fuel demand.

The International Energy Agency (IEA) said on Tuesday high oil prices were hurting consumers and could dent fuel demand at a time of slowing global economic activity.