Oil extended declines to a two-month low on fading prospects for a resolution to the protracted U.S.-China trade dispute.
Futures in New York were down 0.4%, after settling 0.2% lower on Tuesday. In the latest salvo of the long-running trade war between the world’s largest economies, U.S. officials are discussing restricting capital flows into China. Meanwhile, Beijing left the door open for retaliatory measures after Washington blacklisted Chinese tech giants.
West Texas Intermediate for November delivery fell 22 cents to $52.41 a barrel on the New York Mercantile Exchange as at 6:55 a.m. Singapore time, the lowest since Aug. 7.
November WTI slipped 12 cents to close at $52.63 a barrel on Tuesday.
Brent for December settlement closed down 11 cents to $58.24 on the London-based ICE Futures Europe Exchange.