Oil prices tread water Tuesday ahead of the start of U.S. trading from a European-Japanese trade agreement, offsetting headwinds from supply commitments.

Crude oil prices fell dramatically on Monday on commitments from major oil suppliers and a report from the International Monetary Fund on fragility in the global market. The price for Brent crude oil, the global benchmark, dropped 4.6 percent Monday, on the back of a 6 percent decline last week.

Global economic tensions from trade disputes could undermine growth and crimp demand for oil.

"The recently announced and anticipated tariff increases by the United States and retaliatory measures by trading partners have increased the likelihood of escalating and sustained trade actions," the IMF's report read. "These could derail the recovery and depress medium-term growth prospects, both through their direct impact on resource allocation and productivity and by raising uncertainty and taking a toll on investment."

On Tuesday, a possible counteraction was realized in Tokyo when Japanese and European leaders signed off on a trade agreement that contrasted U.S. trade policies. Addressing Japanese Prime Minister Shinzo Abe, European President Jean-Claude Juncker said open doors would create win-win situations for trading partners.

"As far as we are concerned, there is no protection in protectionism -- and there is no unity where there is unilateralism," he said in his prepared remarks.

Crude oil prices were mixed ahead of the start of U.S. trading. The price for Brent crude oil was up 0.1 percent as of 9:15 a.m. EDT to $71.91 per barrel. West Texas Intermediate, the U.S. benchmark for the price was oil, was charting new territory with a decline of 0.48 percent to $66.75 per barrel.

U.S. crude oil production is accelerating, but remains locked in because of a shortage of available pipeline capacity. That capacity may be impeded by U.S. tariffs on imported steel.

Speaking alongside U.S. President Donald Trump in Helsinki, Russian President Vladimir Putin offered assurances Monday about stability for the oil market.

"We are not interested in a sharp drop in prices below the lower limit," he said. "We are not interested in excessively high prices either, because they can kill refining, engineering and other branches of the economy."

Russia sits on a committee monitoring compliance with a plan steered by the Organization of Petroleum Exporting Countries to keep supply levels balanced with demand.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Big petroleum projects in Argentina face tiny challenge: a lizard
Buenos Aires (AFP) July 13, 2018
A tiny but critically endangered lizard found in Argentina's extensive Vaca Muerta petroleum field could pose a major challenge to companies planning multimillion-dollar investments in the area. The lizard, whose scientific name is Liolaemus cuyumhue, was discovered in an area known as Bajo de Anelo, in the western province of Neuquen. "We have classified this lizard as critically endangered," warned Luciano Avila, a herpetologist, or reptile specialist. The species was identified just a ... read more