Oil prices fell on Monday and US crude fell to its lowest level in more than two weeks as the US-China trade war intensified to undermine confidence in global economic growth. This definitely leads to escalating dangers of global economic recession.
Brent crude LCOc1 was down 54 cents, or 0.9 percent, at $58.80 a barrel by 05:38 GMT, after it had earlier approached $58.24 a barrel, the lowest since August 15.
US crude fell 59 cents, or 1.1 percent, to $53.58 a barrel, after falling earlier to $52.96, the lowest since August 9.
The economic slowdown is fueled by rising trade tensions between the United States and China.
Late last week, China’s Ministry of Commerce said it would impose a 5-10 percent surcharge on 5,078 products from the United States, including crude oil and agricultural products, including soybeans and small planes.
In response, US President Donald Trump announced that he would ask US companies to seek ways to close down their activities in China and manufacture products in the United States.
‘Last week, US energy companies cut drilling rigs to the maximum in nearly four months and the number of rigs fell to the lowest level since January 2018, as producers cut spending on new drilling and complete drilling activities.