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2019.06.1715:19:00UTC+00Oil Futures Settle Lower On Trade Concerns

Crude oil prices drifted lower on Monday amid renewed concerns about energy demand prospects due to economic slowdown in China.

Recent data from the National Bureau of Statistics showed China's industrial production advanced just 5% year-on-year in May, with the pace of growth falling to the lowest level in 17 years amid trade tensions with the United States.

Rising tensions in the Middle East limited oil's slide.

West Texas Intermediate Crude oil futures for July ended down $0.58, or 1.1%, at $51.93 a barrel.

On Friday, WTI crude futures for July ended up $0.23, or about 0.4%, at $52.51 a barrel. Oil futures shed 2.7% last week.

Data showed China's crude oil imports dropped by 8% in May, compared to a month earlier. This has raised concerns about global economic slowdown and weaker demand for oil.

Oil prices were also weighed down by a downward revision by the International Energy Agency in its estimate for global oil demand growth for the second consecutive month.

Traders are awaiting a meeting between OPEC members and their allies, due in July. The OPEC and its allies are expected to take a decision on whether to extend a production cut agreement that ends this month.

In news related to Middle East tensions, U.S. Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week.

In an interview with Fox News on Sunday, Pompeo said, "We don't want war. We've done what we can to deter this. The Iranians should understand very clearly that we will continue to take actions that deter Iran from engaging in this kind of behaviour."

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