Oil sets new seven-month low on trade tensions

Oil prices fell further on Wednesday, extending recent heavy losses as deepening US-China trade tensions weighed on the outlook for the global economy and energy demand.

Brent crude futures were down 70 cents, or 1.2 per cent, at $58.26 a barrel by 1205 GMT, setting a fresh seven-month low. Prices have lost more than 20 per cent since hitting their 2019 peak in April. US West Texas Intermediate (WTI) crude futures were down 38 cents, or 0.7 per cent, at $53.25.

Brent has plunged more than 10 per cent over the past week after US President Donald Trump said he would slap a 10% tariff on a further $300 billion in Chinese imports from September 1, sending global equity markets into a tailspin.