Trade tensions and growth fears weigh on oil prices

Oil prices slumped in July as trade tensions rose, ports reopened in Libya and fears of a slowdown in global economic growth increased. However, the short end of the Brent futures curve moved into contango suggesting that investors expect prices to rise in the coming months. Meanwhile, US prices ticked down, despite stocks remaining well below their five-year average. At the same time, coal prices in Europe and the Pacific declined as more seasonable weather, concerns about softer economic growth in China and rising supply helped to take some of the heat out of the market.