Lower oil prices on demand worries

Oil prices traded slightly lower on Tuesday in Asia amid demand worries and uncertainties surrounding the trade war between China and the US

U.S. Crude Oil WTI Futures slipped 0.1% to $58.98 by 1:20 AM ET (05:20 GMT), while International Brent Oil Futures were little changed at $64.23.

Saudi Arabia, Russia and other oil producers banded under the OPEC+ alliance agreed in Vienna on Friday to reduce daily output by a total of 2.1 million barrels, or 2.1% of world supply, over the first quarter of next year.

Oil prices surged late last week following the news, but lost momentum yesterday following the release of weak Chinese export data, as it raised concerns about damage to global demand caused by the Sino-US trade war.

Unless a trade deal is signed by Dec. 15, the Trump administration is set to raise tariffs further on some $156 billion Chinese imports.

“China is clearly not immune to either the US trade tariffs, or the lingering slowdown in the broader global economy,” said Jeffrey Halley, senior market analyst at OANDA.

OPEC will release on Wednesday its monthly oil report, followed by the more important International Energy Agency (IEA) report on global supply-demand.