Oil prices have dropped again over increasing concerns that the ongoing trade frictions between the US and China will affect demand.
International benchmark Brent crude futures decreased by 18 cents to $57.20 a barrel while the US West Texas Intermediate (WTI) futures reduced by nine cents to $52.45 a barrel, reported Reuters.
Both benchmarks recovered some of their losses in earlier sessions over reports that Saudi Arabia had reached out to other oil producers to discuss ways in stabilising oil prices.
The benchmarks have lost nearly 20% of their prices compared to levels in April.
The crude market is currently affected by trade tensions after the US President Donald Trump announced 10% tariffs on additional Chinese goods, effective 1 September. The subsequent decrease in Chinese currency triggered fresh fears.
Oanda senior market analyst Edward Moya was quoted by Reuters as saying: “The tentative oil rebound could be shortlived as the US-China trade dispute is providing no real reasons to be optimistic.”
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Meanwhile, a Saudi Arabian official told the news agency that the kingdom is planning to maintain its crude oil exports below seven million barrels per day this month and reduce global oil inventories and stabilise the market in September.
ANZ Bank also said that the current production levels from Saudi Arabia will be reduced in September.
UAE Energy Minister Suhail al-Mazrouei said that the OPEC and non-OPEC ministerial monitoring committee would meet next month to review the oil market.
Last month, OPEC and other allied nations agreed to extend ongoing crude supply cuts to March 2020.