Shafaq News/ Oil prices fell on Monday, pushing US crude to its lowest level in more than two weeks, as the intensified US-China trade war triggered confidence in the global economy.

Brent crude fell 63 cents or 1.1%, to $ 58.71 a barrel by 0232 GMT, after earlier reaching $ 58.24, the lowest level since August 15.

The price of US oil fell 68 cents, or 1.3%, to $ 53.49 a barrel, after earlier falling to $ 52.96, the lowest level since August 9.

Concerns about the economic slowdown have been raised by mounting trade tensions between the United States and China.

The Chinese Ministry of Commerce said late last week it would impose an additional tariff of 5% or 10% on a total of 5,078 US products, including crude oil and agricultural products such as soybeans and small aircraft.

In response, President Donald Trump said he was asking US companies to look for ways to close operations in China and make products in the United States.

"The only thing that will lift the storm clouds on the oil markets this week is China and the United States talk and decide to take a mutual step," said Jeffrey Haley, a market analyst in Oanda. "I can't see it happening."

US Federal Reserve Chairman Jerome Powell said in an annual economic seminar in Jackson Hole, Wyoming that the US economy is in a "right place" and that the Federal Reserve will "act as necessary" to keep current economic expansion on track. "

The comments gave some clue as to whether the central bank will cut interest rates at its next meeting.

But adding to concerns about a possible recession, US manufacturing industries recorded the first month of deflation in nearly a decade.

The Brent / WTI spread was minus $ 5.24, after widening 60 cents to settle at $ 5.17 on Friday. The spread exploded after China included US oil for the first time in its customs moves.

The US Commodity Futures Trading Commission (CFTC) said that hedge funds and other money managers raised their bullish bets on US crude to a three-month high in the last week.