Oil dips as global economy takes precedence

Oil dips as global economy takes precedence

Oil markets posted weekly losses on concerns of weakening demand after data last week showed much smaller-than-expected decline in US crude inventories.

Oil also gained support from forecasts that USA data would show US crude stockpiles fell 3.6 million barrels in the latest week.

At 07:18 GMT, August WTI crude oil is trading $57.46, down $0.20 or -0.33% and September Brent crude oil is at $64.05, down $0.06 or -0.11%. -China trade dispute that has been dragging down the global economy and oil demand.

The European Union on Tuesday urged Iran to reverse its scaled up uranium enrichment that breaches a nuclear deal it agreed in 2015 with world powers.

Oil costs rose on Monday, boosted by escalating tensions round Iran's nuclear program and better-than-expected U.S.jobs information.

The White House said in April that tightening sanctions on Iran will have "no material impact" on oil prices given the large supply of USA oil on the global market. It should be noted that the economic powerhouses are also the world's two largest oil consumers. After the USA central bank kept interest rates unchanged last month, Federal Reserve Chairman Jerome Powell said that "we've noted some developments at home and around the world that bear our close attention".

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"Global growth remains the main factor holding back crude prices", said Alfonso Esparza, senior analyst at OANDA. Spain, meanwhile, said the seizure came at the request of the U.S.

Russian oil output fell close to a three-year low in early July, industry sources told Reuters, dragged down by declining output from the largest producer Rosneft.

The spokesman for the Atomic Energy Organization of Iran on Monday announced that Iran has raised the concentration of its enriched uranium to 4.5 percent, crossing the limit of 3.67 percent set by the 2015 nuclear deal, the official IRNA news agency reported. This follows discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe. -China trade war, heading into its second year, dampens prospects for global economic growth, which strongly impacts oil demand growth.

"Investors and traders are waiting to hear what direction the Fed will be taking before placing their bets", said Sungchil Will Yun, a commodities analyst at HI Investment & Futures Corp.in Seoul.

"The weaker global economic outlook is keeping oil prices under downward pressure, but tensions in the Middle East are enhancing awareness to possible supply risk and should keep a floor under oil in the medium term", said Stephen Innes, managing partner at Vanguard Markets in Bangkok.

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