WASHINGTON (dpa-AFX) - Amid lingering fears about a likely drop in energy demand due to the ongoing U.S.-China trade war's adverse impact on global economic growth, crude oil prices tumbled on Tuesday.
Oil prices fell despite U.S. President Donald Trump signing an executive order, declaring a total economic embargo against Venezuela, prohibiting transactions with the country, unless specifically exempted.
West Texas Intermediate crude oil futures for September faltered after a positive start and ended lower by $1.06, or 1.9%, at $53.63 a barrel.
Brent crude futures were down $0.68, or 1.1%, at $59.13 a barrel around mid afternoon.
In its short-term outlook, released earlier in the day, the Energy Information Administration said Brent crude spot prices are likely to average $64 a barrel in the second half of 2019 and $65 in year 2020.
Traders also took note of reports that Iran has threatened to block all energy exports out of the Strait of Hormuz. Iran has reportedly said that it would do so if it is unable to sell oil as promised by a nuclear deal a few years back in exchange for curbing uranium enrichment.
Markets now await weekly oil inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).
The API is scheduled to release its weekly oil report later on Tuesday, while the EIA's inventory data is due out Wednesday morning.
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