Oil prices fall as worsening Sino-US trade war fuels fear of dip in demands

Oil fell on Wednesday as the intensifying Sino-US trade dispute stoked worries over demand, although a drop in US crude inventories offered some support to prices.

International benchmark Brent crude futures were at $58.70 a barrel by 0039 GMT, down 24 cents, or 0.41%, from their previous settlement and trading near seven-month lows.

West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.37%, from their last close to $53.43 per barrel.

“Crude oil prices remained under pressure as investors grappled with the impact of the trade conflict,” ANZ bank said in a note. Brent prices have plunged more than 9% in the past week after US President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, sending global equity markets into a tailspin.