Economy

Oil falls as South Korea growth revision highlights trade war impact

Oil falls as South Korea growth revision highlights trade war impact”

The U.S. -China trade dispute has also affected South Korea's economy. Trump tweeted that China will have a much tougher time securing a trade deal if the Asian nation waits until after the 2020 US presidential election and he wins.

UNITED STATE crude was down 65 cents, or 1.19%, at $54.45 a barrel by 0857 GMT, while Brent was down 47 cents at $58.19 a barrel. It fell to a session low of $52.84 a barrel, the lowest since August 9. It sank as low as $57.23 a barrel, also the weakest since August 9.

Oil prices got a boost on Wednesday, climbing more than 3% with the help of strong economic data coming out of China's services sector.

There is some relief on the data front as a private survey showed earlier today that activity in China's services sector expanded at the fastest pace in three months in August.

Meanwhile, addressing to a growing possibility of further downswing ahead of crude oil futures' prices given the extent of a tempestuous demand outlook, a partner at Again Capital in New York, John Kilduff said, "That deterioration is continuing to undermine the demand growth outlook for oil".

Brent is now about 23% lower than its peak for this year in April.

U.S. President Donald Trump told reporters over the weekend that trade talks between both sides would resume in Washington this month.

Oil advanced alongside USA stocks as political tensions appeared to subside in Hong Kong and the United Kingdom, while indicators in China and Europe hinted global economic growth may not be as bad as some expected.

Washington began imposing 15 per cent tariffs on an array of Chinese imports on Sunday, while China began placing new duties on US crude oil. -China dispute, central bank data showed on Tuesday.

Oil rose as a forecast decline in USA crude inventories countered pessimism driven by a surprise contraction in American manufacturing and a warning to China from President Donald Trump.

Higher supplies from Iraq and Nigeria outweighed restraint by Saudi Arabia and losses caused by USA sanctions on Iran. The increase marked a first since OPEC agreed with Russian Federation and other non-members countries, a group known as OPEC+, in December to reduce supply by 1.2 million barrels per day (bpd) from January 1 this year.

Data due this week on U.S. oil inventory levels will be delayed by a day to Wednesday and Thursday because of the U.S. Labor Day holiday on Monday.

Oil prices are likely to remain rangebound for the "foreseeable future" and there will be little spending growth in North American oil and gas fields in the near to medium term, Lorenzo Simonelli, chief executive of General Electric Co's Baker Hughes said.



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