Oil falls as trade war risks persist

Bloomberg

Oil fell to the lowest in more than a week amid a surprise jump in US crude inventories and an escalating trade dispute between the US and China. Futures in New York fell as much as 1.4 percent. The American Petroleum Institute was said to report US stockpiles rose 5.59 million barrels last week.
Meanwhile, the US will propose more than doubling its planned tariffs on $200 billion of Chinese imports, according to three people familiar with the internal deliberations.
Oil slumped more than 7 percent in July, the biggest monthly loss in two years, on concern that trade tensions between the world’s two largest economies will imperil growth and sap global energy demand. Uncertainties remain whether the latest threats from US President Donald Trump will ratchet up pressure on Beijing to return to the negotiating table or increase conflict further that could lead to a full-blown trade war.
“Oil bulls have been left battered and bruised,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London. “The rebalancing paused abruptly last week” as inventories likely increased, while “downside risks for the global economy and therefore oil demand growth prospects remained alive and well.”

OPEC output up as Saudi pumps more
Bloomberg

OPEC’s crude output increased last month as Saudi Arabia pumped near-record volumes to make good on a pledge to consumers that demand would be met.
The kingdom’s oil production grew by 230,000 barrels a day in July, to 10.65 million barrels per day. This is just shy of an all-time peak reached in 2016, according to a Bloomberg survey of analysts, oil companies and ship-tracking data.
Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total production from the Organization of Petroleum Exporting Countries by 300,000 barrels a day.