Oil prices find support in trade talks and Mideast tensions

Crude oil futures slipped on Monday, but losses were capped by a rebound in stock markets and escalating Saudi-Iran tensions.

Global stocks came off six-week lows on optimism that the United States and China are set to begin trade talks, easing fears about a trade war between the world's two largest economies.

The possibility of a full-blown trade war had weighed on the energy complex on fears that it could harm oil demand.

Brent crude futures LCOc1 were down 10 cents at $70.35 a barrel at 1000 GMT. US West Texas Intermediate (WTI) crude futures CLc1 fell 26 cents to $65.62.

US President Donald Trump last week signed a memorandum that could impose tariffs on up to $60 billion of imports from China.

“The ... trade war story ... should be taken into account when trying to quantify the potentially bullish effect of the geopolitical element in oil markets,” said analysts at consultancy JBC Energy.

The market also found support from rising Middle East tensions.