Oil drops as recession risks mount with trade war tariffs

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 per cent, at $58.82 a barrel by 0645 GMT, having earlier touched $58.24, the lowest since August 15. US oil was down 62 cents, or 1.1 per cent, at $53.55 a barrel, having earlier fallen to $52.96, the lowest since August 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 per cent or 10 per cent on a total of 5,078 products originating from the United States, including crude oil, agricultural products such as soybeans, and small aircraft. — Reuters