WASHINGTON (dpa-AFX) - Oil prices retreated on Tuesday amid concerns that the U.S.-China trade dispute would threaten and jeopardize world growth in the coming months.
Brent crude oil dropped 1 percent to $70.54 per barrel while U.S. West Texas Intermediate (WTI) crude futures were down 0.7 percent at $61.82 per barrel.
While ongoing tensions could hurt global oil demand, the downside remained capped by U.S. sanctions on crude exporters Iran and Venezuela.
The United States has tightened sanctions on Iranian oil exports and plans to bulk up its forces in the world's top oil-exporting region.
As sanctions tighten, Iranian crude exports are expected to drop to as low as 500,000 bpd in May.
The U.S. is deploying the USS Abraham Lincoln Carrier Strike Group and a bomber task force to the Middle East to counter 'credible threats', but Tehran dismissed the move as 'psychological warfare'.
On the trade front, the U.S. has accused China of backtracking on commitments in trade talks, but a Chinese negotiating team will still travel to Washington this week to continue the stalled trade talks.
U.S. Trade Representative Robert Lighthizer said he expected top Chinese negotiator Vice Premier Liu He would lead a delegation coming from Beijing for talks in Washington on Thursday and Friday.
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