Oil prices hold steady amid Mideast tensions, weak economic data

TOKYO, June 18 (Reuters) - Oil prices steadied on Tuesday,
caught between rising tensions in the Middle East and signs that
economic growth is being hit by trade tensions between the
United States and China.
Brent crude LCOc1 futures were up 4 cents at $60.98 a
barrel by 0055 GMT. They fell 1.7% in the previous session on
concerns about slowing global growth.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
1 cent lower at $51.92. They dropped 1.1% on Monday.
The New York Federal Reserve said on Monday its gauge of
business growth in New York state posted a record fall this
month to its weakest level in more than 2-1/2 years, suggesting
an abrupt contraction in regional activity.
U.S. business sentiment has sagged as tensions over trade
have escalated between China and the United States and on signs
of softness in the labour market. "The market is in a rut and desperately in need of some
robust economic data to get it out of this funk," said Stephen
Innes, managing partner at Vanguard Markets in Bangkok.
Oil prices have fallen around 20% since 2019 highs reached
in April, in part due to concerns about the U.S.-China trade war
and disappointing economic data.
U.S. President Donald Trump and China's President Xi Jinping
could meet at the G20 summit in Japan later this month. Trump
has said he would meet Xi at the summit, although China has not
confirmed the meeting.
Putting further pressure on oil, the U.S. energy department
said on Monday that shale oil output is expected to reach a
record in July. But tensions in the Middle East are likely to keep prices
supported, analysts said.
Acting U.S. Defense Secretary Patrick Shanahan announced on
Monday the deployment of about 1,000 more troops to the Middle
East for what he said were defensive purposes, citing concerns
about a threat from Iran. Fears of a confrontation between Iran and the United States
have mounted since last Thursday when two oil tankers were
attacked, which Washington has blamed on Tehran.