-China trade is developing into a more entrenched dispute have also hit prices.
After falling more than 5% on Thursday, oil is poised to register its biggest weekly loss this year.
Brent for July settlement rose 44 cents, or 0.7%, to $68.20 a barrel on the London-based ICE Futures Europe exchange after tumbling 4.6% on Thursday. This issue was further fueled by data from the U.S. Energy Information Administration (EIA) that showed a surprising crude oil stockpile buildup of about 5 million barrels for the second week in a row. U.S. West Texas Intermediate crude added 75 cents at $58.66.
"There's no doubt that concerns about the U.S". Besides, the USA sanctions on Iran and Venezuela may support oil prices from going further down. Additional talks between top officials have not been scheduled since the last round ended in a stalemate on May 10, when U.S. President Donald Trump imposed the higher levies on Chinese goods. Looking at the broader picture, unabated fears over the US-China trade war have been offsetting positive drivers supporting crude oil in recent weeks such as rising US-Iran tensions, turmoil in Libya, the so-called "Saudi put" and the ongoing OPEC+ agreement to curb oil production.
With that said, OPEC and its allies may come under pressure to boost production at the next meeting on June 25 as the rise in tariffs are expect to curb the purchasing power for US and Chinese households, but the ongoing alliance may keep oil prices afloat in 2019 as the producers pledge to keep 'inventories under control'.
China in 2018 surpassed the U.S.as the world's largest importer of crude, boosting its supplies as domestic production declined. -China trade tensions have hit global markets, with the MSCI All Country index headed for a weekly fall exceeding 1%, its third week in the red.
The forward price curve for Brent crude futures remains in backwardation, in which prices for prompt delivery are higher than those for later dispatch, implying tight market conditions and making it profitable to produce and sell oil immediately rather than store it for later sale.
The country imports most of its oil from Russia, Saudi Arabia, Angola and a handful of other suppliers, and it is looking to maintain maximum flexibility in a fluctuating market amid a crackdown on Iranian exports and political turmoil in Venezuela that has vastly curtailed supply.
OPIS Energy Analysis Global Head Tom Kloza on the outlook for oil prices.
Addressing to a stubborn growth of United States crude oil inventories despite lack of movements from the refineries, a director of futures at Mizuho in New York, Bob Yawger said, "It's at the extreme end of the range of possibilities for a bearish report".