Oil prices moved lower on Monday as renewed U.S.-China trade frictions amplified concerns about a potential global oversupply, slowing growth, and weakening energy demand.
At 00:32 GMT, Brent crude futures slipped 24 cents, or 0.4%, to $61.05 a barrel, while U.S. West Texas Intermediate futures were down 21 cents, or 0.4%, at $57.33, giving up Friday’s modest gains.
Both benchmarks posted declines of more than 2% last week, their third consecutive weekly drop, weighed down in part by International Energy Agency forecasts pointing to a growing surplus in 2026.
“Concerns about oversupply from increased production by oil-producing nations, coupled with fears of an economic slowdown stemming from escalating U.S.-China trade tensions, are fuelling selling pressure,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“While the U.S. is stepping up pressure on buyers of Russian crude, the upcoming summit between U.S. President Donald Trump and Russian President Vladimir Putin adds uncertainty to the outlook, making it difficult for some investors to adjust their positions,” he said.
Last week, the head of the World Trade Organization urged Washington and Beijing to ease trade tensions, warning that decoupling between the two largest economies could shrink global output by 7% over time.
The world’s two biggest oil consumers have recently reignited their trade dispute, imposing reciprocal port fees on cargo shipments, a move that could disrupt global shipping flows.
Meanwhile, Trump and Putin agreed on Thursday to hold another summit on the war in Ukraine, even as Washington ramped up pressure on India and China to curb Russian oil purchases.
After meeting with Ukrainian President Volodymyr Zelenskiy at the White House on Friday, Trump called on both Ukraine and Russia to “stop the war immediately,” even if that requires Ukraine to give up territory.
Analysts and trade sources noted that U.S. and European pressure on Asian buyers of Russian energy could reduce India’s imports from December, potentially opening the door to cheaper supplies for China.
On the production side, Baker Hughes Company reported on Friday that U.S. energy companies added oil and natural gas rigs for the first time in three weeks, signaling a possible uptick in domestic output.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.
Leave a Reply