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Oil stalls before G20 and OPEC



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London – Oil prices fell again on Tuesday without erasing last week's gains in a waiting market in the face of high-stress Middle East and pre-G20 and OPEC + meetings.

Around 10:00 GMT, North Sea Brent crude for August delivery was worth $ 64.58 in London, down 28 cents at the close on Monday.

In New York, the US WTI barrel for the same term yielded 13 cents at $ 57.77.

"Prices are falling a bit, but they are still close to the highest in three and a half weeks on Monday" at the start of the session, Commerzbank analysts commented.

Prices jumped last week due to tension between the United States and Iran after an American plane was shot down by Tehran.

Any conflict in the Gulf could potentially raise oil prices as investors are worried that the overall supply will be disrupted.

But the market is also wary of the trade dispute between China and the United States, while presidents Donald Trump and Xi Jinping are expected to gather behind the scenes of the G20 summit in Japan this weekend.

"The likely failure of the trade deal negotiations could result in a downward revision of global demand prospects," said PVM analyst Tamas Varga.

Following the G20, another crucial international meeting for the crude oil market will take place, as the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, will meet in Vienna in early July.

They must decide whether or not to renew their production limitation contract in the second half of 2019.

"The renewal of the agreement seems obvious, but the details will be important," Varga said, questioning whether participating countries will freeze their output at current levels, lower than those accepted by OPEC last December. or increase their production to reach these limits.

In the short term, the market will read on Wednesday the weekly data on US reserves published by the US Energy Information Agency.

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