The oil market has already been tightened due to ongoing OPEC plus supply cut, production decline from Iran and Venezuela and Russian outage due to Urals contamination.
Heightened tensions in the Middle East are keeping oil prices firm. The US WTI crude and the Asian benchmark Brent has gained about three percent so far during this week.
Increasing trade war tensions between the US and China is a threat to global economic growth and demand for oil. And oil traders are now worried about the supply tightness than the slumping demand.
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