Oil falls as trade war concerns dampen demand outlook

LONDON, April 29 (Reuters): Oil fell to near a two-week low on Tuesday as investors lowered their demand growth expectations due to the trade war between the United States and China, the world's two biggest economies.

Brent crude futures fell by $1.27, or 1.9%, to $64.59 per barrel by 1303 GMT. US West Texas Intermediate crude fell $1.07, or 1.7%, to $60.98 a barrel.

"The market continues to worry about the obvious; that a drawn out trade war will sap demand, adding downward pressure on prices in search for a new equilibrium where weaker demand is balanced by lower supply from high-cost producers, especially in the U.S." said Saxo Bank analyst Ole Hansen.

President Donald Trump's push to reshape world trade by imposing tariffs on all imports into the United States has made it probable that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.

China, hit with the steepest of those tariffs, has responded with its own levies against US imports, stoking a trade war between the top two oil-consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.