Oil drops on concerns that US-China trade deal may not stoke demand
Oil prices slipped on Wednesday on concerns that the pending Phase 1 trade deal between the US and China, the world’s biggest oil users, may not boost demand as the US intends to keep tariffs on Chinese goods until a second phase.
US Treasury Secretary Steven Mnuchin said late on Tuesday that tariffs on Chinese goods will remain in place until the completion of a second phase of a US-China trade agreement, even as both sides are expected to sign an interim deal later on Wednesday.
Brent crude was down 16 cents, or 0.3 per cent, at $64.33 per barrel by 0745 GMT. US West Texas Intermediate crude futures were down 15 cents, or 0.3 per cent, at $58.08 a barrel.
