Oil prices steadied on Tuesday but remained near four-year lows as a recovery in equity markets was outweighed by recession fears exacerbated by trade conflict between the United States and China, the world's two biggest economies.
Brent futures were up 24 cents, or 0.4%, at $64.45 a barrel at 1224 GMT. U.S. West Texas Intermediate crude futures rose 31 cents, or 0.5%, to $61.01.
The two benchmarks had slumped by 14% and 15% respectively on Monday after U.S. President Donald Trump's April 2 announcement of "reciprocal tariffs" on all imports.
On Tuesday Beijing vowed not to bow to what it called U.S. "blackmail" after Trump threatened an additional 50% tariff on Chinese goods if the country did not lift its 34% retaliatory tariff.
China's commerce ministry said the country "will fight to the end", ratcheting up fears over the global economy.
"Given this increasingly hostile tone, the risk of recession continues to rise, which in turn dims the outlook for global oil demand," said SEB analyst Ole Hvalbye.
Meanwhile, the European Union has proposed counter-tariffs of 25% on a range of U.S. goods in response to U.S. tariffs on steel and aluminium.
Oil prices rose 1% in early trade, which ING's Warren Patterson described as a relief rally aided by steadier equity markets.
"The market has sold off heavily in recent days as it starts to price in a significant demand hit. However, how much of a demand hit we (will) see is still very unclear," he said.
Source: Investing.com
