Oil dips on emerging market turbulence

SINGAPORE: Oil prices dipped on Thursday as emerging market turbulence weighed on sentiment, while a deadline neared for a potential new round of US tariffs on another $200 billion of Chinese goods. US sanctions against Iran, however, prevented prices from falling further as they are expected to tighten the market after being implemented from November, traders said.
US West Texas Intermediate (WTI) crude futures were at $68.59 per barrel at 0645 GMT, down 13 cents, or 0.2 per cent, from their last settlement.
Brent crude futures fell by 4 cents, to $77.23 a barrel.
Emerging market woes are weighing on global economic growth prospects, with Asian shares on Thursday heading for their sixth straight session of losses.
Meanwhile, a public comment period on possible US tariffs on another $200 billion of Chinese goods ends on Thursday, with expectations that US President Donald Trump will impose the additional levies.
“The prospects of increased supplies from Opec and her allies, and weaker demand from China and other emerging markets could weigh further on oil prices going forward, or at least limit the upside potential,” said Fawad Razaqzada, analyst at futures brokerage Forex.
“This is because of the US dollar’s strength, weighing heavily on emerging market currencies, including the yuan, which in turn has pushed up the costs of all dollar-denominated commodities,” he said.
— Reuters