* U.S. imposes 15% tariffs on range of Chinese goods
* China levies tariffs on U.S. oil for first time
* Graphic on U.S. oil rig count: https://tmsnrt.rs/2XdttIW
(Updates with Brent settle)
By Gary McWilliams
HOUSTON, Sept 2 (Reuters) - Oil prices weakened on Monday
after new import tariffs imposed by the United States and China
came into force, raising concerns about a further hit to global
economic growth and demand for crude.
International Brent crude futures LCOc1 settled down 59
cents to $58.66 a barrel, after trading as low as $58.10 during
the day. U.S. benchmark WTI crude CLc1 was down 33 cents at
$54.77 a barrel. Activity was thin because of the U.S. Labor Day
public holiday.
The United States began imposing 15% tariffs on a variety of
Chinese goods on Sunday - including footwear, smart watches and
flat-panel televisions - as China put new duties on U.S. crude,
the latest escalation in a bruising trade war. U.S. President Donald Trump said the two sides would still
meet for talks this month. Trump, writing on Twitter, said his
goal was to reduce U.S. reliance on China, and he again urged
American companies to find alternative suppliers outside China.
"Even as President Trump has indicated that scheduled talks
between the U.S. and China are still to proceed, the market is
more and more resigned to a protracted standoff between the two
countries and will be looking towards central bank easing to
shore up risk appetite," BNP Paribas' Harry Tchilinguirian said.
Beijing's levy of 5% on U.S. crude marks the first time the
fuel had been targeted since the world's two largest economies
started their trade war more than a year ago. Saudi Arabia on Monday named Yasir al-Rumayyan, the head of
its sovereign wealth fund, as chairman of state-run oil giant
Aramco, replacing Energy Minister Khalid al-Falih in the
position. Oil output in August from members of the Organization of the
Petroleum Exporting Countries rose for the first month this year
as higher supply from Iraq and Nigeria outweighed restraint by
top exporter Saudi Arabia and declines caused by U.S. sanctions
on Iran. In the United States, Hurricane Dorian was forecast to bring
heavy rains and a storm surge late Monday through Wednesday to
Florida's Atlantic coast before it moves northward along the
coasts of Georgia, and the Carolinas. The National Hurricane Center called for Dorian to spare the
U.S. mainland a direct hit. If it remains offshore, the storm
would be unlikely to result in reduced fuel demand that
typically follows storm flooding and power outages.
U.S. energy companies also cut drilling rigs for a ninth
month in a row to the lowest level since January last year.
Total U.S. crude output fell in June for the second month in a
row, according to an Energy Department report on Friday. RIG/U
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GRAPHIC: U.S. rig count https://tmsnrt.rs/2X8Myf7
TECHNICAL CHART: Brent oil may fall into $57.13-$57.91 range
CHART: U.S. oil may fall towards $52.99
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