Oil Prices Fall Amid Unending Recession Fears
Oil prices were down on Monday with the U.S. crude posting its lowest in two weeks as the trade war between U.S. and China escalated over the weekend.
Brent crude decreased 0.9% (58.80/barrel) after reaching a $58.24 earlier that marked its lowest in two weeks. U.S. oil lowered by 1.1% ($53.58/barrel) also falling earlier to $52.96, its weakest since August 9.
The commerce ministry of China said last week that it would add 5% or 10% tariff on some five thousand plus products coming from the U.S. which include agricultural products and oil.
In a statement, U.S. President Donald Trump told American companies operating in China to start looking for other ways to make products in the United States.
But a local Chinese newspaper said the U.S. was "daydreaming" when Trump made the announcement.
The possibility of recession resurfaced amid the trade tension as U.S. manufacturing industries posted their first month of contraction after 10 years.
The Brent spread was at -$5.24, after a 60-cent rise only to close at -$5.17 on Friday.