Oil steadies as trade fears balance tension, supply cuts

Oil steadied on Monday, trading below $69 a barrel, as concern over the U.S.-China trade dispute and global economic outlook offset support from Middle East tensions and supply cuts. Figures on Monday showed that profits for Chinese industrial companies shrank in April while new orders for U.S.-made capital goods fell more than expected in a further sign that the economy is slowing.

The main factor preventing crude prices from rising on the geopolitical news is the concern about the global economy, said Petromatrix oil analyst Olivier Jakob. “The macroeconomic outlook does not look good,” Jakob said. Brent crude, the global benchmark, was up 5 cents at $68.74 a barrel by 0839 GMT, having fallen by about 4.5% last week.

U.S. West Texas Intermediate crude was down 36 cents at $58.27. Both crude contracts registered their biggest weekly price declines of the year last week. Public holidays in the United States and Britain on Monday limited participation, keeping volumes low.

Rising tension between the United States and Iran, with Washington’s announcement on Friday that it would deploy more troops to the Middle East, has had little impact on the market so far.