Tokyo
Oil prices fell on Monday, pushing US crude to the lowest in more than two weeks, as an intensifying trade war between the US and China undermined confidence in global economic growth.
Brent crude was down 52 cents, or 0.9%, at $58.82 a barrel by 0645 GMT, having earlier touched $58.24, the lowest since Aug. 15.
US oil was down 62 cents, or 1.1%, at $53.55 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9.
Concerns about an economic slowdown are being fanned by a ratcheting up of trade tensions between the United States and China.
The latest round of tariffs ‘will bring yet another dent to global growth,’ Morgan Stanley said in a note. ‘We view risks of further escalation as meaningful.’
China’s commerce ministry said late last week it would impose additional tariffs of 5% or 10% on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft.
In retaliation, President Donald Trump said he was ordering US companies to look at ways to close operations in China and make products in the United States.
‘The only thing that will lift the storm clouds over oil markets this week will be if both China and the US talk and decide to mutually take a step back,’ said Jeffrey Halley, market analyst at Oanda. ‘I can’t see that happening.’
US Federal Reserve chair Jerome Powell told an annual economic symposium in Jackson Hole, Wyoming that the US economy is in a ‘favourable place’ and the Federal Reserve will ‘act as appropriate’ to keep the current economic expansion on track.’
The remarks gave few clues about whether the central bank will cut interest rates at its next meeting.—Reuters