Oil slips to two- week low on growth, fuel demandworries

Futures in NewYork slipped as much as 1.4% to the lowest intraday price since March 20

Oil fell after China said it would levy tariffs on $ 50 billion ( Dh183 billion) of US imports in retaliation against measures by US President Donald Trump, fanning concerns that economic growth and fuel demand could be hurt.

Futures in New York slipped as much as 1.4 per cent to the lowest intraday price since March 20. China’s Ministry of Commerce in Beijing said it would levy 25 per cent tariffs on imports of 106 US products including automobiles and aircraft. That wiped out earlier support for prices from reduced output among the Organisation of Petroleum Exporting Countries, which dropped to the lowest in a year inMarch.

West Texas Intermediate for May delivery was at $ 62.70 a barrel on the New York Mercantile Exchange, down 81 cents, at 9: 54am in London. The contract rose 50 cents to $ 63.51 on Tuesday. Total volume traded was about 13 per cent belowthe 100day average. Brent for June settlement lost 86 cents to $ 67.26 a barrel on the London- based ICE Futures Europe exchange. The contract added 48 cents to $ 68.12 on Tuesday. The global benchmark crude traded at a $ 4.58 premium to JuneWTI.

China’s charges on US imports match the scale of proposed US tariffs announced earlier. The step ratchets up tension in a brewing trade war between theworld’s two largest trading nations.