Meanwhile, crude oil prices fell further yesterday, extending recent heavy losses as deepening trade tensions between the United States and China weighed on the outlook for the global economy and energy demand.
The global benchmark, Brent crude was down $1.04, or 1.75 percent, at $57.90 a barrel, setting a fresh seven-month low.
The United States West Texas Intermediate (WTI) crude futures were down $1.17, or 2.18 percent, at $52.46.
Both prices have lost more than 20 percent since hitting their 2019 peak in April.
Brent has plunged more than 10 percent over the past week after US President Donald Trump said he would slap a 10 percent tariff on a further $300 billion in Chinese imports.
Trump had vowed to impose new tariffs on Chinese imports and China made further moves against US agricultural cargoes.
The United States had also responded to a decline in China’s Yuan on Monday by branding the country a currency manipulator, pushing China to accuse the US of causing chaos in financial markets.
Trump on Tuesday dismissed fears that the trade row with China could be drawn out further.
But Reuters reported that his comments failed to prevent shares in Asia from falling for an eighth straight session while London’s FTSE 100 gained 0.4 percent.
However, the demand for safe-haven assets such as government debt underscored lingering anxiety over recession risks.
Also, tensions in the Middle East remain high after Iran seized a number of tankers in recent weeks in the Strait of Hormuz, a major chokepoint for oil shipments.
Saudi Energy Minister Khalid al-Falih and US Energy Secretary Rick Perry on Tuesday expressed mutual concern over threats targeting freedom of maritime traffic in the Gulf.
Iran had threatened to block all energy exports out of the Strait of Hormuz, through which a fifth of global oil traffic passes if it was unable to sell oil as promised by a 2015 nuclear deal in exchange for curbing uranium enrichment.
Britain had on Monday joined the US in a maritime security mission in the Gulf to protect merchant vessels after Iran seized a British-flagged vessel.
Elsewhere, data indicating a larger-than-expected drop in US crude stocks offered some support to oil prices after several weeks of large draws on inventories.
Official data from the government’s Energy Information Administration (EIA) was due yesterday.
The EIA on Tuesday lowered its domestic oil growth forecasts for the year after Hurricane Barry disrupted Gulf of Mexico output in July.
Production is set to rise by 1.28 million barrels per day to 12.27 million BPD this year.
Source: THISDAY
