(Corrects last paragraph to say 17.2 million barrels, not 17.4
million)
* Brent, crude up by more than $1
* Trump to impose new tariffs from Sept. 1
* Interactive graphic on daily price moves: https://tmsnrt.rs/2yxypOy
By Aaron Sheldrick
TOKYO, Aug 2 (Reuters) - Oil prices rose more than $1 on
Friday, rebounding from their biggest falls in years after U.S.
President Donald Trump imposed more tariffs on Chinese imports,
intensifying the trade war between the world's two biggest
economies and crude consumers.
Brent crude futures LCOc1 slumped more than 7% on
Thursday, their steepest drop in more than three years. U.S.
West Texas Intermediate (WTI) crude futures CLc1 fell nearly
8%, posting its worst day in more than four years,
The collapse ended a fragile rally built on steady drawdowns
in U.S. inventories, even as global demand looked shaky because
of the trade dispute.
Brent futures rose $1.53, or 2.6%, to $62.03 a barrel by
0220 GMT, while WTI futures gained $1.02, or 1.9%, to $54.97 a
barrel.
Trump said on Thursday he would impose a 10% tariff on $300
billion of Chinese imports from Sept. 1 and could raise tariffs
further if China's President Xi Jinping fails to move more
quickly to strike a trade deal. The announcement extends Trump's tariffs to nearly all of
China's imports into the United States and marks an abrupt end
to a temporary truce in a trade war that has disrupted global
supply chains and roiled financial markets.
Brent and U.S. crude are heading for their first weekly
declines in three, on track for falls of more than 2%.
"Global growth estimates have been under pressure from the
tariff war and the move by the U.S. erases all the goodwill
gained earlier in the week when U.S. negotiators were in
Shanghai to kickstart trade talks," Alfonso Esparza, market
analyst at OANDA said in a note.
There have been mounting signs this week of the economic
toll of the trade dispute between the United States and China,
which reported this week slowing manufacturing activity in July.
U.S. manufacturing activity also slipped last month,
dropping to a near three-year low, and construction spending
fell in June as investment in private construction projects
tumbled to its lowest level in 1-1/2 years.
The economic slowdown has translated into falling oil demand
in the United States, the world's biggest oil consumer.
The amount of crude processed at U.S. oil refineries
averaged 17.2 million barrels per day over the past four weeks,
down 1.3% from the same time a year ago, U.S. government data
showed this week.
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TECHNICALS-U.S. oil may fall more to $51.62 L4N24Y0H1
TECHNICALS-Brent oil targets $57.19 L4N24Y0BH
Daily closes for Brent, U.S. crude in 2019 png https://tmsnrt.rs/2yHHep7
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