Oil drops 1.4% to 5-week low, settling at $61.40, as US-China trade war intensifies


Oil prices tumbled on Tuesday as renewed doubts over U.S.-China trade talks stoked concerns over global growth, but U.S. sanctions on Iran and Venezuela tightened supply and helped to stem losses.

U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. The comments dragged on both Asian and U.S. stock markets.

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U.S. West Texas Intermediate crude futures settled 85 cents lower at $61.40 per barrel, dropping 1.4% to the weakest closing price since March 29.

Brent crude oil futures fell $1.31, or 1.8%, $69.93 per barrel around 2:30 p.m. ET (1830 GMT), on pace for the lowest settle since April 4.

An escalation in the U.S.-China trade war has brought oil prices under renewed pressure,The spat has reinvigorated demand-side concerns, given that the conflict has been adversely impacting prospects for global economic growth.

said Abhishek Kumar, head of Analytics at Interfax Energy in London.

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