Supply concerns outweigh trade wars fears

Oil prices were volatile in June, falling in the first half of the month on fears of a trade war and slowing economic growth in China. But a drop in US inventories, a smaller-than-expected increase in OPEC’s output and the threat of tougher sanctions on Iran gave prices a boost in the second half. Meanwhile, the prices of LNG and coal all rose as warm weather boosted demand in Asia. But there are some signs that coal prices may have got ahead of fundamentals.