Oil down on Sino-US trade war

Oil prices traded lower on Monday in Asia. Sino-US trade war developments were in focus.

US Crude Oil WTI Futures fell 1.1% to $55.04 by 12:35 AM ET (04:35 GMT.). International Brent Oil Futures were down 1.2% to $61.16.

Concerns that the US-China trade war may further intensify eased somewhat after President Donald Trump reportedly said that proposed tariffs on China could be delayed or halted if Beijing “takes positive action.”

During an interview with CNBC, Trump said that his administration could delay or halt the imposition of tariffs if China “takes positive action.”

The comments came on Friday, a day after Trump announced that the US would impose new levies on $300 billion worth of Chinese goods, raising fresh fears about oil demand growth, sending oil prices tumbling 8% – their biggest one-day drop in more than four years.

The trade war has been hitting economic growth, which tends to reduce demand for commodities such as oil.

In other news, Iranian Revolutionary Guards seized an Iraqi oil tanker in the Gulf, which they said was smuggling fuel, Iran’s state media reported on Sunday.

The American Petroleum Institute will issue its weekly report on oil stockpiles on Wednesday in Asia, while the Energy Information Administration will release its weekly report the following day.