Markets > Commodities

Oil prices fell as tariff fears overshadow signals on supply cut

NEW YORK
2019-06-04 04:48

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NEW YORK, June 3 (Xinhua) -- Oil prices dropped on Monday, as the market continued to be weighed down by U.S. increased tariffs on Mexico, despite Saudi Arabia's intentions to further supply cut to shore up prices.

Saudi Minister of Energy Khalid Al-Falih indicated that OPEC would continue to sustain market stability beyond June.

"To me, that means drawing down inventories from their currently elevated levels," the minister was quoted as saying by a local newspaper on Monday.

The global crude market has been rattled by Washington's latest tariff bombshell targeting Mexico, triggering widespread angst over weakening global demand. U.S. President Donald Trump on Thursday said he would impose a 5-percent tariff on all imported Mexican goods beginning June 10 so as to pressure the country to halt undocumented migrants crossing the border, and will gradually increase tariffs until the problem is remedied.

Mexico is one of the largest U.S. trade partners and a major crude oil supplier.

The West Texas Intermediate for July delivery was down 0.25 U.S. dollar to settle at 53.50 dollars a barrel on the New York Mercantile Exchange, while Brent crude for August delivery decreased 0.71 dollar to close at 61.28 dollars a barrel on the London ICE Futures Exchange.
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