Oil prices get some ground back, but cause demand to deteriorate

TOKYO: Oil on Friday recovered some of the losses from the previous session when prices fell the most in a month, although the concerns that emerging markets and trade disputes could affect demand are still dragging.

Brent crude oil rose 23 cents or 0.3 percent, at $ 78.41 a barrel with 0122 GMT, after having dropped 2 percent on Thursday. The global benchmark from the day before rose to the highest since May 22 at $ 80.13 a barrel.

US light crude rose by 27 cents or 0.4 percent with 68.86, after 2.5 percent being stopped on Thursday.

The International Energy Agency warned Thursday that although the oil market was tightening at the moment and the demand for oil in the next three months would reach 100 million barrels per day (BPD), global economic risks were increasing.

"As we move forward in 2019, there is a potential risk to our forecast in some major emerging economies, partly due to currency devaluations against the US dollar, which increases the cost of imported energy," the agency said.

"In addition, there is a risk of growth due to an escalation of trade disputes," said the Paris-based agency.

China will not stick to the demands of the US in trade negotiations, Chinese newspaper China Daily said Friday in an editorial, after Chinese officials welcomed Washington's invitation for a new round of talks.

US President Trump said Thursday on Twitter that the United States has the upper hand in talks.

"We are not under pressure to make a deal with China, they are under pressure to make a deal with us," Trump testified.

US companies in China are being hurt by increasing tensions between Washington and Beijing, according to a survey, which is why lobbyists in the US are urging the Trump administration to reconsider its approach.

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