Baghdad: Oil prices settled on Tuesday at their lowest levels since early May, amid expectations of a supply glut amid trade tensions between the United States and China, which are increasing concerns about an economic slowdown and weak energy demand. Brent crude futures fell 28 cents, or 0.46 %, to settle at $61.01 a barrel. US West Texas Intermediate (WTI) crude futures closed down 2 cents, or 0.03 %, to $57.52.

According to National Iraqi News Agency, the drop in oil prices is attributed to ongoing trade tensions between the United States and China. These tensions are fueling fears of a potential economic slowdown, which in turn impacts global energy demand. The anticipation of a supply glut is also contributing to the downward pressure on prices.

The current situation in the oil markets is reflective of broader economic uncertainties. As the trade dispute continues, market participants remain cautious, assessing the potential long-term impacts on the global economy and energy consumption patterns. The i
nteraction between supply expectations and geopolitical factors is playing a significant role in shaping the market dynamics.

The decline in oil prices highlights the sensitivity of the markets to geopolitical and economic developments. Traders and analysts are closely monitoring the situation, looking for signals that might indicate a change in supply-demand dynamics or a resolution to the trade tensions. The outcome of these developments will likely have significant implications for the future trajectory of oil prices.