WASHINGTON (dpa-AFX) - Oil futures settled lower on Friday as worries about growth and uncertainty about the outlook for oil demand weighed on the commodity's prices.
U.S. President Donald Trump said earlier this week that his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4 along with an extra 10% duty on Chinese imports over the fentanyl opioid crisis.
China vowed to take 'all necessary countermeasures and defend its legitimate rights and interests', intensifying a brewing trade war between the world's two largest economies.
It is feared that the trade war may hurt global growth, worsen inflation, possibly spark recessions in some countries and impact the demand for commodities such as crude oil in the global market.
Also, the OPEC+ is reportedly debating whether to raise oil output in April as planned or freeze it.
West Texas Intermediate crude oil futures for April closed down $0.59 or about 0.84% at $69.76 a barrel.
Brent crude futures were down $0.60 or 0.82% at $72.97 a barrel.
In economic news, the Commerce Department said the annual rate of growth by the PCE price index slowed to 2.5% in January from 2.6% in December, which also matched expectations.
Excluding food and energy prices, the core PCE price still climbed by 0.3% in January after edging up by 0.2% in December. The increase by core prices was also in line with estimates.
The annual rate of core PCE price growth slowed to 2.6% in January from 2.9% in December, which also matched expectations.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income grew by 0.9% in January after rising by 0.4% in December, while personal spending dipped by 0.2% in January after climbing by 0.8% in December.
A report released by MNI Indicators said its Chicago business barometer shot up to 45.5 in February from 39.5 in January. Economists had expected the Chicago business barometer to show a much more modest increase to 40.6.
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