2020.05.0411:00:00UTC+00Oil Prices Tumble As US-China Tensions Flare

Oil prices fell sharply on Monday as a fresh spat between the United States and China over the origin of the coronavirus added to persistent oversupply concerns.

Benchmark Brent crude fell by 83 cents, or 3.1 percent, to $25.61 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down more than 8 percent at $18.19.

Trade war fears returned to the fore after U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus originated in China.

China's Global Times said in an editorial that Pompeo was "bluffing" and called on the United States to present its evidence.

OPEC production surged by the most in almost 30 years in April, a Bloomberg news agency survey showed, as countries kept pumping vast amounts of crude even after reaching a price-war truce earlier in the month.

Weak manufacturing data from Asia and Europe also raised concerns that demand will not recover anytime soon.

April Manufacturing PMI's from India, Indonesia, Malaysia, Myanmar, Philippines, South Korea, Taiwan and Vietnam all collapsed to hit historic lows, raising fears of prolonged coronavirus downturn.

In Europe, the final Purchasing Managers' Index fell to 33.4 from 44.5 in March. The score was also below the flash estimate of 33.6.