Oil Steady Despite Trade Worries

Oil prices steadied on Tuesday as rising tension between the United States and Iran highlighted risks to supply while escalating trade disputes raised the prospect of slower economic growth and perhaps weaker energy demand.

Brent crude oil stayed unchanged at $73.06 a barrel. US light crude was up 15 cents at $68.04 0n the day, CNBC reported.

Both oil benchmarks have fallen this month as crude supplies from Russia, Saudi Arabia and other members of the Organization of Petroleum Exporting Countries have increased and unscheduled production losses have eased.

Market sentiment has been driven by geopolitical worries: Fears that supply could be disrupted by confrontation in the Middle East or that Washington’s trade dispute with its major trading partners could dampen global growth.

Iran, OPEC’s third-largest producer pumping 3.75 million barrels a day, has come under increasing US pressure, with the administration of US President Donald Trump pushing countries to cut all imports of Iranian oil from November.

Saudi Arabia and other large producers are ramping up output to offset losses that are likely to come as the November deadline approaches.

G20 finance leaders also voiced concern over the weekend about the risk to global growth from trade tensions between the United States and China, among others.