Reuters: Oil slumps as US and China add more tariffs in trade war – Economic news

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Oil prices fell on Monday after the new US and Chinese tariffs came into effect, raising concerns about continued global growth and crude demand.

Brent fell 97 cents to 58.28 dollars a barrel at 15:43 GMT, while US crude WTI reference lost 46 cents to 54.64 dollars a barrel. The activity was weak due to the US holiday, reported by Reuters.

The United States began imposing 15% tariffs on a variety of Chinese products – shoes, smart watches and flat-screen TVs – while China imposed new rights on US crude, the latest escalation of A deadly trade war.

Read alsoReuters: Oil prices rise 1% following sharp decline in US crude oil stocks

US President Donald Trump said the two sides would still meet for talks this month. Trump, writing on Twitter, said his goal was to reduce the US's reliance on China and once again urged US companies to find alternative suppliers outside of China.

"Even though President Trump has indicated that the planned talks between the United States and China are still to continue, the market is increasingly resigned to a prolonged stalemate between the two countries and he considers the possibility for the bank central to easing its appetite for risk, "Harry Tchilinguirian of BNP Paribas said.

The 5% Beijing US crude tax marks the first target of this fuel since the two largest economies in the world began their trade war more than a year ago.

Elsewhere, oil production in August by members of the Organization of Petroleum Exporting Countries increased for the first month of this year, while increased supply from Iraq and Nigeria was higher than the restraint imposed by the main exporter, Saudi Arabia, and the decline caused by US sanctions imposed on Iran.

In the United States, Hurricane Dorian is expected to result in heavy rains and a storm surge Monday through Wednesday on the east coast of Florida before heading north toward the Carolina coast.

The National Hurricane Center forecast for the storm, which was blowing at sustained winds of 250 km / h (155 km / h), called for staying above the ocean, thus sparing the direct effects of wind on the continent American. If it remained offshore, it is unlikely that the storm will result in a reduction in fuel demand that usually follows floods and power outages.

US energy companies also reduced drilling rigs for the ninth consecutive month, reaching their lowest level since last January. Total production of US crude oil declined in June for the second month in a row, according to a report from the Energy Department released Friday.