Mubasher: Key oil benchmarks diverged on Tuesday amid worries that an escalating China-US trade row could dent global economic growth, while US sanctions against Iran and Venezuela caused a tense in markets, Reuters reported.

At 7:32 am GMT, US Nymex crude futures went up by 0.05% to $62.28 per barrel (pb), while global benchmark Brent futures fell by 0.27% to $71.05 pb.

Talks between China and the US reached a stalemate in the weekend after US President Donald Trump threatened to raise tariffs on Chinese goods by more than double.

“Worsening trade friction between Washington and Beijing poses a downside risk to our forecasts” for petroleum products, a note by tanker brokerage Eastport was quoted by Reuters.

On the supply front, oil markets were on edge as the US toughened sanctions on Iranian crude shipments, while announcing its plan to expand its military footing in the Middle East.

In response, Iran pledged “reciprocal actions” against US penalties, which could point to resuming of some of its nuclear programme.

US sanctions already reduced Iranian crude barrels over the past year to below 1 million barrels per day (bpd), while in May shipments are set to fall to as low as 500,000 bpd as sanctions tighten.

In Venezuela, supplies were disrupted as Washington slapped the Latin American nation with sanctions.

“The recent Brent pull-back has taken prices too low in the face of tight fundamentals and growing supply risks, just as refiners come back from extended spring turnarounds,” Goldman Sachs was quoted.