* Brent falls as much as 3% for a second consecutive session
* China says has to take counter-measures to latest U.S.tariffs
* WTI discount to Brent at narrowest since March 2018(Adds comment, settlement prices)
By Devika Krishna Kumar
NEW YORK, Aug 15 (Reuters) - Oil prices fell more than 1% onThursday, extending the previous session's 3% drop, pressured bymounting recession concerns and China's threat to imposecounter-measures in retaliation for the latest U.S. tariffs on$300 billion of Chinese goods.
In a sign of investor concern that the world's biggesteconomy could be heading for recession, the U.S. Treasury bondyield curve inverted on Wednesday for the first time since 2007.
China's on Thursday vowed to counter the latest U.S.tariffs, but called on the United States to meet it halfway on apotential trade deal, as U.S. President Donald Trump said anypact would have to be on America's terms.
A trade war between to the world's two largest economies hasroiled global markets and fueled worries about a slowdown in oildemand growth.
Brent crude fell as much as $1.81, or 3%, to $57.67a barrel. The global benchmark ended the session down $1.25, or2.1%, at $58.23 and West Texas Intermediate crude (WTI)settled down 76 cents, or 1.4%, to $54.47.
"Oil is getting whacked again as risk-aversion again kicksin and fears of a trade war inflicted slowdown grip traders,"said Craig Erlam, senior market analyst at OANDA.
"WTI had enjoyed a decent rebound over the last week butfailed at the first hurdle, running into resistance around themid-July lows before plunging once again."
The price of Brent is still up 10% this year thanks tosupply cuts led by the Organization of the Petroleum ExportingCountries and allies such as Russia, a group known as OPEC+.
In July, OPEC+ agreed to extend oil output cuts until March2020 to prop up prices. A Saudi official on Aug. 8 indicatedmore steps may be coming, saying "Saudi Arabia is committed todo whatever it takes to keep the market balanced next year."
But the efforts of OPEC+ have been outweighed by worriesabout the global economy amid the U.S.-China trade dispute anduncertainty over Brexit, as well as rising U.S. stockpiles ofcrude and higher output of U.S. shale oil.
"The market is becoming very anxious about global growth,"said Tamas Varga of oil broker PVM.
China reported disappointing data for July, including asurprise drop in industrial output growth to a more than 17-yearlow. A slump in exports sent Germany's economy into reverse inthe second quarter.
Meanwhile, a second week of unexpected rises in U.S. crudeinventories is adding to the pressure.
U.S. crude stocks grew by 1.6 million barrelslast week, compared with expectations for a drop of 2.8 millionbarrels, the Energy Information Administration (EIA) said.
Providing some support to U.S. crude prices, inventories atCushing, Oklahoma, the delivery point for WTI, fell by about 2million barrels in the week to Aug. 13, traders said, citingdata from market intelligence firm Genscape.
That helped narrow U.S. crude's discount to Brent<WTCLc1-LCOc1> by over 16% to as little as $3.55 a barrel, thesmallest level since March 2018.
Also differentiating Brent from WTI is the looming OPECreport, said Bob Yawger, director of energy futures at Mizuho inNew York.
"People are really anxious about OPEC's monthly report whichis coming out tomorrow, particularly about non-OPEC supplyincreasing and about 2020 global oil demand taking a hit," hesaid.
(Additional reporting by Jessica Resnick-Ault in New York, Alexlawler in London, Aaron Sheldrick; editing by Jason Neely andMarguerita Choy)