Oil Pinned Near $69 as Supply Risks Weighed Against Trade Battle - Bloomberg

Oil Pinned Near $69 as Supply Risks Weighed Against Trade Battle - Bloomberg:

Oil’s trading in a tight range as investors weigh falling U.S. inventories and potential supply curbs in the Middle East against escalating trade tensions between the world’s two largest economies.

Futures in New York were little changed after a 0.8 percent gain Monday. They have traded within a $3 range so far in August, the tightest spread since 2003 based on monthly data. While expectations for falling U.S. stockpiles during the summer driving season and fears over lower Iranian exports have supported gains, concerns that a trade war between China and America will hurt consumption have kept a lid on prices.

Crude has declined about 7 percent from the highs of June as the trade dispute threatens to imperil economic growth that underpins energy consumption. While Saudi Arabia was said to have cut production last month despite a pledge in June by the Organization of Petroleum Exporting Countries and allies to add more barrels, Russia said it has the capacity to lift output to a post-Soviet record. Meanwhile, the U.S. is seeking to restrict Iranian oil sales via sanctions.