US-China trade war may further lower crude prices

Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed.

TOKYO: Oil traded below US$66 a barrel as escalating trade tensions between the world’s two largest economies added jitters to a market that’s already nervous about the upcoming Opec meeting on output policy.

Futures in New York rose 0.5%. Prices fell 1.2% on Tuesday as China vowed to retaliate against President Donald Trump’s threat to slap tariffs on another US$200bil in Chinese imports, raising fears the growing spat could slow down economic growth and cut oil demand.