Oil drops more than 1% on concern over U.S.-China trade war

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Oil drops more than 1% on concern over U.S.-China trade war
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Oil prices fell more than 1% on Monday amid concerns over the prospects of a tra...

TOKYO - Oil prices fell more than 1% on Monday amid concerns over the prospects of a trade deal between the United States and China, while worries about oversupply also weighed on the market.

The 16-month trade war between the world’s two biggest economies has slowed economic growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020. “China delivered a massive deflationary shock in its factories, providing a somber tone towards the fragile state of the global economy,” Samuel Siew, analyst at Phillip Futures, said in a note.

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