Oil prices fall as market eyes trade war, awaits stocks data

Oil prices recover some ground, but economic concerns weigh

-China trade dispute, central bank data showed on Tuesday.The move on Sunday by Argentina to impose capital controls is also casting a spotlight on emerging market risks. That came after a USA factory gauge fell to its weakest level since 2016 and Trump tweeted that it will be tougher for China to secure a trade deal if it waits until after the 2020 US presidential election. Even though Saudi Arabia is still over-complying with its share of the cuts, it lifted production in August to produce 9.63 million barrels per day. West Texas Intermediate futures gained 20 cents, or 0.37%, at $54.14 at barrel. It sank as low as $57.23 a barrel, also the weakest since August 9.

US data released on Wednesday showed manufacturing activity contracted in August for the first time in three years, while euro zone activity shrank for a seventh month. Earlier, separate data showed euro zone manufacturing activity contracted for a seventh month in August. Brent is about 23 per cent lower than its peak for this year in April. -China profession disagreement that has actually dragged out the global economic climate in addition to climbing OPEC and also Russian oil result.

The United States this week imposed 15% tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list, deepening the trade war that has rumbled on for more than a year.

Though the trade conflict has intensified, US President Donald Trump said both sides would meet for talks this month.

The U.S. and China have failed to agree in the past week on at least two requests - an American appeal to set some parameters for the next round of talks and a Chinese call to delay new tariffs, said two people who asked not to be identified as the discussions were private.

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

Meanwhile, Opec's crude oil output rose 80,000 barrels per day in August, the first monthly increase this year, a Reuters survey found. -China trade war and soft South Korean economic data throwing a curveball into an already complicated market.

OPEC, Russia and other non-members, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from January 1 this year. There was no settlement price on Monday due to the Labor Day holiday in the U.S.

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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