The price of Brent crude levelled off in early trading on Monday following a 2% slump at the end of last week on the back of potential tensions between China and the US following President Donald Trump’s threats to impose hefty tariffs on Chinese goods, reported Reuters.
Brent crude futures were trading at $67.2 per barrel, up 0.2%, while light, sweet US West Texas Intermediate (WTI) was also up 2% at $62.2 per barrel.
The ongoing schism between US production spikes and Organisation of the Petroleum Exporting Countries (OPEC) led output cuts is still creating a relatively uncertain playing field. Statistics revealed by Baker Hughes, a GE company, last week showed that 11 new rigs had come on-stream in the US, taking the overall total to 808, the highest amount since March 2015.
The continual lifting of US oil production is helping to offset the severe outages in Venezuela due to its ongoing economic crisis, according to analysts cited by the news agency.
Meanwhile global prices are still being supported by general demand as well as the commitment by 24 countries, working as a cartel, and driven by OPEC members and Russia, to scale back crude output to reduce inventories and support the market.