Oil falls as South Korea growth revision highlights trade war impact
Russia aims to fully comply with an agreement during September to cut oil production among OPEC and some non-OPEC producers.
Oil prices fell on Tuesday, declining for a second day as more signs emerged of the toll from the US-China trade war, with South Korea revising down second-quarter growth due to lower exports.
US crude CLc1 was down 32 cents, or 0.6%, at $54.78 a barrel by 0055 GMT, while Brent LCOc1 was 7 cents lower at $58.59 a barrel.
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.
US President Donald Trump said both sides would still meet for talks later this month.
South Korea’s economy turned out to have expanded less than estimated during the second quarter as exports were revised down in the face of the prolonged US-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.
“What’s bad for the outlook for global growth is bad for oil at the moment and only big draws in inventories can delay that drift lower,” said Greg McKenna, strategist at Mckenna Macro.
Data due this week on US inventory levels will be delayed by a day to Wednesday and Thursday due to the US Labor Day holiday on Monday.
Russia aims to fully comply with an agreement during September to cut oil production among OPEC and some non-OPEC producers, Russian Energy Minister Alexander Novak said in a statement on Monday.
Oil output from the Organization of Petroleum Exporting Countries (OPEC) rose in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by top Saudi Arabia and losses caused by US sanctions on Iran.
OPEC, Russia and other non-members, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members and exempting Iran, Libya and Venezuela.