Oil resumed its decline as demand fears deepened after President Donald Trump threatened to slap more tariffs on China, countering concerns crude flows may be disrupted following Iran's seizure of another ship.

Futures lost as much as 1% in New York. Trump said Friday he can raise tariffs on China to a “much higher number” after his initial threat the previous day spurred the steepest one-day drop in more than four years. Iran seized a foreign tanker in the Persian Gulf on July 31, the Revolutionary Guards said on their Sepah News portal Sunday, without giving any details about the vessel.

West Texas Intermediate oil for September delivery fell 24 cents, or 0.4%, to $55.42 a barrel on the New York Mercantile Exchange as of 8:42 a.m. in Singapore after losing as much as 56 cents earlier. The contract dropped 1% last week and tumbled 7.9% on Thursday.

Brent crude for October settlement declined 51 cents, or 0.8%, to $61.38 a barrel on the ICE Futures Europe Exchange. It fell 2.5% last week. The global benchmark traded at a premium of $5.98 to WTI for the same month.

Source : Bloomberg