Investing.com - Oil prices were down on Wednesday in Asia amid fears that the ongoing trade war between the U.S. and China would affect demand for oil.
U.S. Crude Oil WTI Futures were down 1.1% to $58.52 by 12:30 AM ET (04:30 GMT). International Brent futures declined 0.8% to $68.14.
Energy traders remained focused on the persistent trade tensions between the U.S. and China, the world’s biggest oil importers.
"Oil prices lack direction because the oil market currently finds itself caught between supply risks and concerns about demand," Commerzbank said in a note.
"A whole host of poor economic data from the major economic areas of the U.S., China and Europe, plus the entrenched situation in the trade talks, are not good news for the demand outlook."
Trade tensions ratcheted higher after the Global Times, an English-language Chinese newspaper, tweeted that China was seriously considering cutting exports of rare earth metals in response to the U.S.’s recent imposition of higher import tariffs on its goods and an effective boycott of telecoms giant Huawei.
It came after U.S. President Donald Trump said on Monday that Washington was not ready to make a deal with China yet.
Weekly data on U.S. crude inventories are delayed this week due to Monday’s holiday. The American Petroleum Institute will release its figures late Wednesday, while the Energy Information Administration’s report is due Thursday morning.