International oil prices took a significant hit on Tuesday, extending their steep decline for a second straight day.
While the U.S. suggested potential progress in trade talks with India, it did not mention advancement in trade negotiations with China, fueling market anxiety.
Bob Yawger, director of energy futures at Mizuho, noted that trade between China and the U.S. has slowed to the point of resembling a semi-embargo, warning that each day without a trade agreement with a major partner brings the world closer to a scenario of global demand destruction.
The ongoing U.S.-China trade tensions continued to weigh heavily on the oil market for the second consecutive day, driving prices down sharply.
The decline, which stood at around 1.5% the previous day, widened to approximately 2.5% on this day.
Brent crude, the global oil benchmark, tumbled 1.61 USD (2.44%) to 64.25 USD per barrel for June delivery.
Similarly, West Texas Intermediate (WTI), the U.S. oil benchmark, slumped 1.63 USD (2.63%) to 60.42 USD per barrel for June delivery.
