05.08.201906:36:00UTC+00Oil Prices Ease On Growth Concerns

Oil prices eased on Monday amid concerns a prolonged conflict between the world's two largest economies will weigh on global economic growth. Tensions in the Middle East helped to limit the downside to some extent.

Benchmark Brent crude fell by 62 cents, or 1 percent, to $61.27 a barrel while U.S. crude futures were down 47 cents, or 0.85 percent, at $55.19 a barrel.

Investors fretted about weaker crude demand after U.S. President Donald Trump said last week he would impose 10 percent tariffs on another $300 billion worth of Chinese goods, effective Sept. 1.

China vowed to retaliate and said it would "take necessary counter measures to resolutely defend the core interests of the country and the fundamental interests of the people."

Today, China's central bank allowed the yuan to breach the watershed 7 per dollar mark, fueling speculation that Beijing was allowing currency depreciation to counter Trump's latest tariff threat.

Geopolitical tensions remain in focus after Iran reportedly seized a foreign oil tanker and its seven crew members in the Persian Gulf last week.

It is the third such incident in just two weeks amid rising tensions in the strategic waterway.