UPDATE 8-Oil sinks as manufacturing data feeds global economy worries

* U.S. manufacturing shrinks for first time in 3 years
* Trump warns China against dragging its feet on trade
* U.S. oil falls 2%, Brent down almost 1%

(New throughout, updates prices, market activity and comments
to settlement)
By Stephanie Kelly
NEW YORK, Sept 3 (Reuters) - Oil prices fell on Tuesday,
with U.S. crude futures down 2% after manufacturing data raised
concerns about a weakening global economy, while the U.S.-China
trade dispute continued to drag on investor sentiment.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
$1.16, or 2.1%, to settle at $53.94 a barrel. The session low
was $52.84 a barrel, the lowest since Aug. 9.
Brent crude LCOc1 futures lost 40 cents, or 0.7%, to
settle at $58.26 a barrel. It sank as low as $57.23 a barrel,
also the weakest since Aug. 9.
Prices extended losses following data that showed U.S.
manufacturing activity in August contracted for the first time
in three years. Earlier, separate data showed euro
zone manufacturing activity contracted for a seventh month in
August. "That deterioration is continuing to undermine the demand
growth outlook for oil," said John Kilduff, a partner at Again
Capital in New York.
Oil prices have fallen around 20% since a 2019 peak reached
in April, hit by concerns the trade war would dent oil demand.
U.S. President Donald Trump said on Tuesday that trade talks
between the United States and China were going well, though he
warned he would be "tougher" in negotiations if discussions drag
on until his second term. Trump said the two sides
would meet for talks this month.
Chinese Vice Premier Liu He said China firmly opposes a
trade war, the state news agency Xinhua reported. Washington began imposing 15% tariffs on an array of Chinese
imports on Sunday, while China began placing new duties on U.S.
crude oil.
The U.S.-China trade dispute "is the single most important
flat price driver of late," said Tamas Varga of oil brokerage
PVM.
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.
Russian oil production C-RU-OUT in August rose to 11.294
million barrels per day (bpd), data showed on Monday, hitting
its highest since March and topping the rate Moscow pledged
under a pact with the Organization of Petroleum Exporting
Countries (OPEC).
"Downside price pressures were accentuated today by weekend
indications that OPEC had lifted production in August on a
month-to-month basis for the first time this year while Russia
is reportedly producing beyond agreed upon quota," Jim
Ritterbusch, president of Ritterbusch and Associates, said in a
note.
Data due this week on U.S. inventory levels will be delayed
by a day to Wednesday and Thursday because of the U.S. Labor Day
holiday on Monday.
Oil prices are likely to remain range-bound for the
"foreseeable future" and there will be little spending growth in
North American oil and gas fields in the near to medium term,
Lorenzo Simonelli, chief executive of General Electric Co's
Baker Hughes BHGE.N said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: Brent oil still targets $57.13-$57.91 range
L3N25U02R
CHART: U.S. oil to fall towards $52.99 L3N25U0QK
GRAPHIC U.S., Russian, Saudi crude oil production png https://tmsnrt.rs/2QYNGAd
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