Brent oil prices eases from 2019 highs as markets await trade talks outcome

Traders said the slight downward correction was driven by concerns about the health of the global economy this year.

Bank of America Merrill Lynch said in a note that the Sino-American trade dispute was hurting economic growth globally.

“Addressing global trade tensions is key for improving the economic outlook,” it said in a note.

China’s vice premier and chief trade negotiator, Liu He, and US Trade Representative Robert Lighthizer lead a round of trade talks this week in Washington.

Considering the economic outlook and supply and demand balances, the bank said it expects Brent prices to average between $50 and $70 per barrel, “anchored around $60.”

Despite some caution around trade, global oil markets remain relatively tight because of supply cuts led by the Middle East dominated Organisation of the Petroleum Exporting Countries (OPEC), with top crude exporter Saudi Arabia cutting the most.

Saudi seaborne crude exports fell in the first half of February, with departures standing at 6.204 million barrels per day (bpd), a 1.341 million bpd decline on the previous month and 0.91 million bpd decline on the year, data intelligence firm Kpler said.

Further providing oil markets with support are US sanctions against petroleum exporters Iran and Venezuela.

Venezuela is a major crude supplier to US refineries while Iran is a key exporter to major demand centers in Asia, especially China and India.