Oil prices fall for second day amid weak economic growth, MidEast tensions

Oil prices fell for the second day on Tuesday, after more signs that global economic growth is being hit by US-China trade tensions, although losses were limited amid tensions in the Middle East after tanker attacks last week.

Brent crude futures were down 16 cents, or 0.3 percent, at $60.78 a barrel by 5:15 am Riyadh time. They fell 1.7 percent in the previous session on concerns about slowing global growth.

U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.2 percent, at $51.92. They dropped 1.1 percent on Monday.

US business sentiment has sagged as tensions over trade have escalated between China and the United States and on signs of softness in the labor market.

"The (oil) market is in a rut and desperately in need of some robust economic data to get it out of this funk," Stephen Innes, managing partner at Vanguard Markets in Bangkok, said.

Oil prices have fallen around 20 percent since 2019 highs reached in April, in part due to concerns about the US-China trade war and disappointing economic data.

Putting further pressure on oil, the US energy department said on Monday that shale oil output is expected to reach a record in July.

But tensions in the Middle East are likely to keep prices supported, analysts said.

Acting US Defense Secretary Patrick Shanahan announced on Monday the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran.