SINGAPORE (Reuters) – Oil prices fell on Monday as the US-China trade dispute slowed global economic growth, despite the impending US sanctions on the Iranian oil sector not letting crude oil fall further.
FILE PHOTO A worker inspects a pump lifter on an oil field in Tacheng, Uigur Autonomous Region of Xinjiang, China June 27, 201
International Brent crude oil futures LCOc1 were priced at $ 75.63 a barrel at 0654 GMT, 19 cents from their last close.
U.S. West Texas Intermediate (WTI) crude oil futures CLc1 fell 30 cents to $ 68.42 a barrel.
Trading activity was limited due to a holiday in the UK, traders said.
"The decline in US rigs and the decline in US inventory levels last week fueled oil prices in a longstanding US-China trade war that could dampen global growth and weigh on oil demand," said Stephen Innes , Head of Asia Pacific Trading at Futures Brokerage OANDA in Singapore.
U.S. Energy companies cut nine oil rigs last week, dropping to 860, the largest reduction since May 2016, energy services company Baker Hughes said Friday.
"Despite growing concerns about possible oversupply, markets will continue to benefit from US sanctions on Iran," Innes added.
Washington will sanction Iran's oil exports from November.
OPEC member Iran has exported about 2.5 million barrels of crude oil per day so far this year. Most analysts expect this number to drop by at least 1 million barrels a day after sanctions are imposed.
Reporting by Henning Gloystein; Edited by Richard Pullin and Joseph Radford