Oil extends losses amid renewed worry about global growth

Singapore — Oil prices fell on Wednesday for a second day on worries that fuel demand could fall after US President Donald Trump doused optimism over China-US trade talks and reignited concerns about global economic growth.

Brent crude futures fell 47c to $62.63 a barrel by 4.42am GMT, while US West Texas Intermediate crude dropped to $56.94, down 35c.

Both benchmarks have fallen to their lowest level since before the attack on Saudi Arabian oil facilities on September 14.

“What really pulled the rug from underneath oil was Donald Trump’s comments on trade. He’s still maintaining quite a belligerent position,” said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.

Trump criticised China’s trade practices at the UN general assembly on Tuesday and said he would not accept a “bad deal” in US-China trade negotiations.

China is the world’s largest oil importer and second-largest crude user. The US is the largest consumer of oil.

Trump said he saw a path to peace with Iran even as he denounced Iran for “bloodlust”, cooling other risk premiums built into oil prices.

Oil rallied last week after a crippling attack on Saudi Arabia’s oil installations that has disrupted supplies from the world’s top exporter. To meet its supply obligations to Saudi refineries overseas, Saudi Aramco is buying oil from other Middle East producers.