Oil Slides on Prospect of Easing Geopolitical Risk, More Supply - Bloomberg

Oil Slides on Prospect of Easing Geopolitical Risk, More Supply - Bloomberg:

Oil slid for a second day as the U.S. raised hopes of easing tensions with OPEC member Iran, while President Donald Trump’s threat of new tariffs on China rekindled fears about demand.

Futures declined 3.3% in New York on Tuesday, adding to Monday’s 1.1% drop. U.S. Secretary of State Mike Pompeo said Iran, which has been hit by American sanctions over its weapons program, had signaled an openness to talks. The Islamic Republic’s foreign minister made similar comments, offering the first hint of a diplomatic solution since the Trump announced plans in May 2019 to squeeze Iranian oil exports.

Meanwhile, in the U.S., the industry-funded American Petroleum Institute reported U.S. distillate stockpiles rose by 6.23 million barrels last week. That would be the largest build since January if Energy Information Administration data confirms it on Wednesday.

August West Texas Intermediate oil traded at $57.63 a barrel at 4:43 p.m. in New York after settling at $57.62 a barrel on the New York Mercantile Exchange, its steepest decline since July 2. Brent futures for September settlement declined $2.13 to $64.35 on the ICE Futures Europe Exchange in London. The global benchmark crude was at a premium of $6.61 to WTI for the same month.