Mubasher: Oil prices edged up on Monday despite markets were spooked over a potential slowdown in the global economy against the backdrop of a stalemate in the US-China trade negotiations, according to Reuters.

By 7:38 am GMT, US Nymex crude futures rose by 0.41% to $61.91 per barrel (pb) after declining earlier in the session, while global benchmark Brent futures climbed by 0.85% to $71.22 pb.

The trade row between the world’s two biggest economies and biggest oil consumers escalated on Friday as the US raised tariffs on $200 billion in Chinese imports, after President Donald Trump accused Beijing of breaking the deal by backtracking on earlier commitments made during months of talks.

It seemed that the trade dialogue hit a stalemate on Sunday as Washington demanded pledges of material changes to Chinese law, to which Beijing responded with a refusal to swallow any “bitter fruit” that harmed its interests.

An escalating trade conflict between Washington and Beijing will keep a lid on crude price gains, according to London-based Interfax Energy analytics head Abhishek Kumar.

“Market participants will closely watch China’s retaliatory steps in response to the imposition of additional US tariffs on Chinese goods,” Kumar was quoted by Reuters.

It is worth noting that the US and China made up 34% of global oil demand in the first quarter of 2019, according to the International Energy Agency (IEA).

In addition, US energy producer scaled back in the week ended 10 May the number of oil rigs for the third time in four weeks, to a total of 805, General Electric’s energy services firm Baker Hughes said on Friday.