Mubasher: Oil prices eased on Tuesday as the US-China trade weighing on the global economy, Reuters reported.

The accelerating conflict between the world’s two largest oil consumers maintains affecting global oil demand.

“The weaker global economic outlook is keeping oil prices under downward pressure, but tensions in the Middle East are enhancing awareness to possible supply risk and should keep a floor under oil in the medium term,” managing partner at Vanguard Markets in Bangkok Stephen Innes told the London-based news agency.

Moreover, official data showed today that core machinery orders in Japan, the world’s fourth-largest user of crude, dropped sharply in eight months.

By 6:43 am GMT, Brent crude futures dipped $0.20, or 0.31%, to $63.91 per barrel (pb), while the US West Texas Intermediate (WTI) crude futures slipped $0.22, or 0.38%, at $57.44 pb.

Last week, hedge funds sold more Brent futures and options amid growing concerns over the global economy impacted by the Organization of the Petroleum Exporting Countries’s (OPEC) decision to extend output cuts.