Oil prices dropped on July 9 on taking cues from the latest signs the US-China trade war is dragging on the global economy, although the potential for conflicts in the Middle East offered support.
Brent crude futures dropped 14 cents, or 0.2%, at $63.97 a barrel by 0524 GMT. They fell 12 cents on July 8.
US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session.
Japanese government figures on July 9 also depicted the fall in real wages in the country for a fifth straight month. The country is the world’s fourth-largest user of crude.
Hedge funds have sold more Brent futures and options last week as concerns about the global economy trumped the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to extend output cuts.
Iran on July 8 threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.
Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers.
The confrontation has brought the United States and Iran in a tussle. Last month, US President Donald Trump called off air strikes at the last minute in retaliation for Iran shooting down a US drone over the Gulf.
In the meantime, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by OPEC.
Industry and government data for release later on July 9 and on July 10 is expected to show that US crude stockpiles dropped for a fourth consecutive week, dropping 3.6 million barrels, according to a preliminary Reuters poll.
