Oil Drops Below $54 as Global Recession, Supply Concerns Mount
- WTI futures prices drop late in session, erasing earlier gains
- Russian Finance Minister warns oil may fall to less than $40
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Oil closed down in New York for the first time in three days amid rising concerns about the likelihood of a global economic contraction and mounting supplies.
U.S. crude has fallen about 18% from a peak in late April and volatility has jumped as deteriorating U.S.-China trade relations cast a pall over the global growth outlook. Speculation that demand will weaken, mostly because of the U.S.-China trade war, continue to weigh on prices, said John Kilduff, a partner at hedge fund Again Capital.