* Brent, U.S. oil prices edge down 0.3 pct
* Russia, Saudi Arabia boosting supply
* Trade disputes hang over market
(Adds comment, detail, graphic; updates prices)
By Aaron Sheldrick
TOKYO, July 24 (Reuters) – Oil prices extended declines into
a second session on Tuesday as attention shifted to the risk of
oversupply, with market participants shrugging off escalating
tensions between the United States and Iran.
Brent crude oil was down 19 cents, or 0.3 percent,
at $72.87 a barrel by 0345 GMT, after settling down 1 cent on
Monday. U.S. crude was down 21 cents, or 0.3 percent, at
$67.68 a barrel. The contract fell 37 cents the previous day.
Earlier in Monday’s session, the market had risen after
President Donald Trump warned of dire consequences for Iran if
it threatened the United States.
“While oil prices were the primary beneficiary of the
weekend’s headline battle between President Trump and Iranian
President Rouhani, that boost started to fizzle as traders then
veered to oversupply concerns,” said Stephen Innes, head of
trading for APAC at brokerage OANDA.
Iran has been under increasing pressure from the United
States, with Trump’s administration pushing countries to cut all
imports of Iranian oil from November.
Saudi Arabia and large producers are ramping up output to
offset losses that are likely to come as the November deadline
Meanwhile, U.S. crude inventories at the delivery hub at
Cushing, Oklahoma gained in the four days to Friday, according
to information supplier Genscape, traders said.
On a weekly basis, stockpiles at the hub were expected to
fall for the 10th consecutive week, traders said.
The market has also been dented by concerns about the impact
on global economic growth and energy demand of escalating
disputes over global trade.
G20 finance leaders on the weekend voiced concern about the
risk to global growth from trade tensions between the United
States and China, among others.
“The lingering trade war effects continue to raise global
growth concerns that continue to dampen sentiment,” Innes said.
(Reporting by Aaron Sheldrick
Editing by Joseph Radford)