Oil prices extended losses on Monday, falling more than 2% as escalating trade tensions between the U.S. and China stoked fears of a recession that could reduce crude demand.
Both the Brent and WTI benchmarks dropped to their lowest levels since April 2021.
Brent futures fell by $1.61, or 2.5%, to $63.97 per barrel, while U.S. West Texas Intermediate crude futures declined by $1.64, or 2.7%, to $60.35. Last week, Brent and WTI experienced declines of 10.9% and 10.6%, respectively, as concerns over the impact of tariffs and a potential economic slowdown grew.
Saudi Arabia also made significant cuts to its crude oil prices for Asian buyers, dropping them to the lowest level in four months. This move signals concerns that tariffs will impact global oil demand.
The U.S. and China are locked in a growing trade dispute, with China imposing additional levies of 34% on American goods. Although oil, gas, and refined product imports were exempt from the new tariffs, the broader economic implications—such as inflation and slowed growth—could weigh on oil prices.
In addition, the OPEC+ group, which includes OPEC members and allies, has advanced its plans to increase oil production. The group now plans to boost output by 411,000 barrels per day in May, a significant increase from the previously planned 135,000 bpd.
This influx of supply, coupled with weaker demand signals from Asia, further adds downward pressure on prices.
