Oil falls again on trade deal fatigue and US crude stocks increase

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Rising Middle East tension, particularly in Iraq where a commodities port was blocked, is helping support oil prices

London — Oil extended declines to $62 a barrel on Tuesday, pressured by limited progress in efforts to resolve the trade conflict between the US and China, as well as an expected rise in US crude inventories.

Brent crude, the global benchmark, was down 49c at $61.95 a barrel at 9.37am GMT. It had reached $63.65 — the highest since September 24 — on Thursday. US West Texas Intermediate crude dropped 36c to $56.69. Oil also declined on the prospect of a further increase in US crude inventories, suggesting ample supplies. The average estimate from six analysts polled by Reuters was for crude inventories to have risen by about 1.1-million barrels in the week to November 15, representing a fourth consecutive weekly gain.

Oil found some support from tension in the Middle East, home to top exporter Saudi Arabia and other core oil cartel Opec members.

 

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