Brent crude prices have recovered from earlier losses in the wake of growing tensions between the US and Iran, as the US attempts to restrict Iran oil imports.
Markets are also gripped with concerns over signs of oversupply.
Brent crude futures rose six cents to reach $73.12 per barrel, while US West Texas Intermediate crude decreased by three cents, trading at $67.86 after falling 37 cents the previous day, Reuters reported.
The markets inched up on 23 July after US President Donald Trump issued a warning on a social media platform that Iran would face dire consequences if it threatened the US.
Brokerage OANDA APAC trading head Stephen Innes was quoted as saying: “While oil prices were the primary beneficiary of the weekend’s headline battle between President Trump and Iranian President Rouhani, that boost started to fizzle as traders then veered to oversupply concerns.”
The US has been demanding countries to cut all Iran oil imports, starting this November.
Iran is a member of the Organization of the Petroleum Exporting Countries (OPEC) and produces 3.75 million barrels per day.
On a weekly basis, traders are expecting stockpiles at the delivery hub at Cushing, Oklahoma to fall for the tenth consecutive week.
Recently, finance ministers and central bank governors from G20 group, which represents the world’s 20 biggest economies, noted that risks to global growth have increased due to China-US trade tensions, among others.
Freight Investors Services fuel oil broker Matt Stanley said: “It is surely only a matter of time before something tangible yields from the ongoing trade war stories and it probably won’t be a pretty outcome.”