Oil drops as U.S.-China tension escalates - Reuters

Oil drops as U.S.-China tension escalates - Reuters:

Oil futures edged lower on Monday as rising U.S.-China tensions weighed on market sentiment, but reports that OPEC and Russia were close to a deal extending output buoyed prices.

Brent futures LCOc1 fell 37 cents, or 1%, to $37.47 a barrel by 11:10 a.m. (1510 GMT). U.S. crude CLc1 fell $1.02, or 2.9%, to $34.47 a barrel.

Investors turned cautious after China warned of retaliation on U.S. moves over Hong Kong.

China has asked its state-owned firms to halt purchases of soybeans and pork from the United States, two people familiar with the matter said, after Washington said it would eliminate special U.S. treatment for Hong Kong to punish Beijing.