Oil prices have declined due to worries about weak demand for crude oil and a Saudi pledge to balance any shortfall from countries that are hit by sanctions.
Benchmark Brent crude futures edged down 42 cents at $64.44 a barrel, while US crude futures fell 32 cents to $57.58 a barrel, Reuters reported.
A senior US official stated that President Donald Trump was “comfortable with any outcome” from the talks to take place during the G20 meeting this week, which dampened hopes for progress in the trade war between China and the US.
Saudi Aramco chief executive said that the company’s spare capacity of 12 million barrels per day (Mbpd) was enough and that it would address the needs of its customers.
The Federal Reserve Bank of Dallas released weak manufacturing data which added to worries about slipping crude demand.
PVM analyst Tamas Varga was quoted by Reuters as saying: “The geopolitical risk premium (in the Middle East) is partly offset by another stand-off, namely between the US and China.”
“The general consensus is that no break-through will take place toward the end of the week when the two leaders resume their trade talks.”
Demand concerns were briefly overcome last week when Brent edged up 5% and US crude surged almost 10% after Iranian forces shot down a US drone. Oil prices are further set to gain support as the Organization of the Petroleum Exporting Countries and its members including Russia are expected to extend supply cut deal when they meet on 1-2 July.