UPDATE 11-Oil prices slide as U.S.-China trade war escalates

* For the week, Brent gains 1.2%, U.S. crude falls 1.3%
* Trump presses U.S. companies to close China operations
* China unveils retaliatory tariffs on U.S. goods
* Powell says Fed will "act as appropriate"
* U.S. oil rig count at Jan 2018 low -Baker Hughes

(Adds CFTC data)
By Stephanie Kelly
NEW YORK, Aug 23 (Reuters) - Oil prices fell on Friday after
China unveiled retaliatory tariffs against about $75 billion
worth of U.S. goods including crude oil, another escalation of a
protracted trade dispute between the world's two largest
economies.
Brent crude LCOc1 futures fell 58 cents, or 1%, to settle
at $59.34 a barrel. U.S. West Texas Intermediate (WTI) crude
CLc1 futures fell $1.18, or 2.1%, to settle at $54.17 a
barrel.
WTI lost 1.3% for the week, while Brent rose 1.2% during the
week.
China's commerce ministry said it would impose additional
tariffs of 5% or 10% on a total of 5,078 products originating
from the United States, including crude oil, agricultural
products such as soybeans, and small aircraft. In retaliation, U.S. President Donald Trump said he was
ordering U.S. companies to look at ways to close operations in
China and make products in the United States. "We still view the U.S.-Chinese trade standoff as a major
bearish consideration that will likely be requiring additional
downward oil demand adjustments as this year proceeds," said Jim
Ritterbusch, president of Ritterbusch and Associates.
Investors also focused on a speech by U.S. Federal Reserve
chair Jerome Powell at an annual economic symposium in Jackson
Hole, Wyoming. The U.S. economy is in a "favorable place" and the Federal
Reserve will "act as appropriate" to keep the current economic
expansion on track, Powell said.
The remarks gave few clues about whether the central bank
will cut interest rates at its next meeting.
St. Louis Federal Reserve Bank President James Bullard said
policymakers will have a "robust debate" about cutting U.S.
interest rates by half a percentage point at their next policy
meeting in September.
Exacerbating concern over the possibility of recession, U.S.
manufacturing industries registered their first month of
contraction in almost a decade. "Some have blamed the hesitant tone (for oil prices) on an
end-of-summer lull. Yet, in truth, the sense of unease stems
from ongoing worries about the global economy," said Stephen
Brennock of oil broker PVM.
Tensions in the Middle East have kept investors on edge as
well. Iran's foreign minister said talks held on Friday with
French President Emmanuel Macron about a landmark 2015 nuclear
deal were "productive." Iran has said it will scale back compliance with the pact
unless the Europeans find a solution enabling Tehran to sell its
oil despite U.S. sanctions.
U.S. energy firms this week cut the most oil rigs in about
four months, with the rig count falling to the lowest since
January 2018, as producers cut spending on new drilling and
completions. Hedge funds and other money managers raised their bullish
wagers on U.S. crude to a three-month high in the latest week,
the U.S. Commodity Futures Trading Commission (CFTC) said.
The speculator group raise its combined futures and options
position in New York and London by 17,541 contracts to 217,104
during the week ended Aug. 20.

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