Oil held losses after a surprise contraction in American manufacturing and a warning from President Donald Trump highlighted the impact and intractability of the U.S.-China trade war.
Futures in New York edged higher after closing 2.1% lower on Tuesday. A key U.S. factory gauge fell below 50 for the first time since 2016, adding to concern the world’s largest economy may be headed for a recession. Trump tweetedthat China will have a much tougher time securing a trade deal if the Asian nation waits until he wins the 2020 U.S. presidential election.
WTI for October delivery rose 29 cents, or 0.5%, to $54.23 a barrel on the New York Mercantile Exchange as of 9:56 a.m. in Singapore. The contract declined $1.16 over the previous two days. There was no settlement price on Monday due to the Labor Day holiday in the U.S.