Oil prices recover some ground, but economic concerns weigh

* U.S. manufacturing activity contracted in August - data
* Trumps warns he would be tougher on Beijing if trade talks
drag
* China's services sector activity picks up pace - survey

By Jessica Jaganathan and Florence Tan
SINGAPORE, Sept 4 (Reuters) - Oil prices recovered some
ground on Wednesday after touching their lowest in close to a
month during the previous session on concerns that a weakening
global economy could depress demand.
Brent crude LCOc1 was up 12 cents, or 0.21%, at $58.38 a
barrel by 0425 GMT, while U.S. West Texas Intermediate futures
CLc1 gained 20 cents, or 0.37%, at $54.14 at barrel.
Oil prices sunk to a nearly one-month low on Tuesday
following data that showed U.S. manufacturing activity in August
contracted for the first time in three years and euro zone
manufacturing activity contracted for a seventh month in August.
But global markets bounced on Wednesday after a private
survey showed that activity in China's services sector expanded
at the fastest pace in three months in August as new orders
rose, prompting the biggest increase in hiring in over a year.
China is the world's second-largest oil consumer and largest
importer.
"Given the tumble that we saw overnight it's probably people
locking in gains on shorts or perhaps establishing new longs in
anticipation we might get an announcement from Beijing (on
setting a date for trade talks with the United States)," said
Michael McCarthy, chief market strategist at CMC Markets in
Sydney.
A short position is when an investor sells futures in
expectations of falling prices while a long position is when one
buys futures to profit from rising prices.
U.S. President Donald Trump on Tuesday warned he would be
"tougher" on Beijing in a second term if trade talks dragged on,
compounding market fears that ongoing trade disputes between the
United States and China could trigger a U.S. recession.
"Market participants are becoming increasingly worried about
recession risk," said Stephen Innes, a market strategist at
AxiTrader.
"Moreover, given that tariffs present a significant threat
to U.S. growth and in turn, the health of the global economy,
oil prices will remain under pressure especially if trade and
tariff war shows no sign of abating."
Data due this week on U.S. inventory levels will be delayed
by a day to Wednesday and Thursday because of the U.S. Labour
Day holiday on Monday.
U.S. crude oil stockpiles likely declined for a third
straight week, a preliminary Reuters poll showed on Tuesday.
EIA/S
On the supply side, Venezuela's oil exports fell in August
to their lowest level in 2019, internal reports and Refinitiv
Eikon data showed, following tougher U.S. sanctions.