Oil falls as South Korea growth revision highlights trade war impact

TOKYO, Sept 3 (Reuters) - Oil prices fell on Tuesday,
declining for a second day as more signs emerged of the toll
from the U.S.-China trade war, with South Korea revising down
second-quarter growth due to lower exports.
U.S. crude CLc1 was down 32 cents, or 0.6%, at $54.78 a
barrel by 0055 GMT, while Brent LCOc1 was 7 cents lower at
$58.59 a barrel.
The United States this week imposed 15% tariffs on a variety
of Chinese goods and China began to impose new duties on a $75
billion target list, deepening the trade war that has rumbled on
for more than a year.
U.S. President Donald Trump said both sides would still meet
for talks later this month.
South Korea's economy turned out to have expanded less than
estimated during the second quarter as exports were revised down
in the face of the prolonged U.S.-China trade dispute, central
bank data showed on Tuesday. The move on Sunday by Argentina to impose capital controls
is also casting a spotlight on emerging market risks.
"What's bad for the outlook for global growth is bad for oil
at the moment and only big draws in inventories can delay that
drift lower," said Greg McKenna, strategist at Mckenna Macro.
Data due this week on U.S. inventory levels will be delayed
by a day to Wednesday and Thursday due to the U.S. Labor Day
holiday on Monday.
Russia aims to fully comply with an agreement during
September to cut oil production among OPEC and some non-OPEC
producers, Russian Energy Minister Alexander Novak said in a
statement on Monday.
Oil output from the Organization of Petroleum Exporting
Countries (OPEC) rose in August for the first month this year as
higher supply from Iraq and Nigeria outweighed restraint by top
Saudi Arabia and losses caused by U.S. sanctions on Iran.
OPEC, Russia and other non-members, known as OPEC+, agreed
in December to reduce supply by 1.2 million bpd from Jan. 1 this
year. OPEC's share of the cut is 800,000 bpd, to be delivered by
11 members and exempting Iran, Libya and Venezuela.