Brent futures slip after touching $70.03 in the previous session. Credit: Linda Flores.

Global oil prices have dropped as concerns over the US-China trade negotiations drag the market.

International benchmark Brent futures slipped by 15 cents to $69.25 a barrel after touching $70.03 in the previous session while US West Texas Intermediate (WTI) crude was down by 1%, reported Reuters.

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The US and China are currently negotiating to end a trade dispute that saw both countries placing tariffs on each other’s exports. US President Donald Trump also said that the two countries are very close to reach an agreement on the deal.

Concerns of global economic slowdown, which will reduce fuel consumption, are weighing the oil market.

Increasing oil production in the US is also pulling the market. According to official data, US production soared to a record 12.2 million bpd last week.

“Concerns of global economic slowdown, which will reduce fuel consumption, are weighing the oil market.”

However, the global oil market witnessed significant growth this year with Brent gaining 30% and WTI soaring by nearly 40%.The increase is primarily attributed to the US sanctions against key petroleum producers Iran and Venezuela, and output cuts.

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The Organization of the Petroleum Exporting Countries (OPEC), the cartel of major oil exporters, along with other allies such as Russia agreed to cut production by 1.2 million barrels per day (Mbpd) to boost prices.

Rystad Energy told Reuters that the supply cuts will continue to support the oil prices in the second half of this year as well as in 2020.

The International Maritime Organization (IMO) is set to introduce a new regulation that will require all shippers to use fuel with reduced sulphur content. The move, in turn, is expected to prop up diesel and low-sulphur fuel oil consumption.