Oil prices dip slightly on Monday as investors react to a U.S. sovereign credit rating downgrade by Moody’s and official data showing a slowdown in China’s industrial output and retail sales.
The developments raise fresh concerns about the economic outlook for the world’s top two oil consumers.
Brent crude falls 14 cents, or 0.2%, to $65.27 a barrel by 1255 GMT. U.S. West Texas Intermediate (WTI) crude drops 5 cents, or 0.1%, to $62.45, with the June contract set to expire Tuesday. Both benchmarks gained over 1% last week following the U.S. and China’s agreement to roll back most tariffs on each other’s goods.
Additional pressure comes from U.S. Treasury Secretary Scott Bessent’s remarks that President Donald Trump will move forward with threatened tariffs on countries that do not negotiate in “good faith.”
Chinese government data released Monday shows slower growth in industrial production, although some sectors perform better than anticipated. The data raises caution about demand from China, a major oil consumer.
Oil prices are also being influenced by uncertainty around ongoing nuclear negotiations between the United States and Iran. A recent U.S. statement calling for Iran to halt uranium enrichment has drawn criticism from Tehran, signalling a potentially lengthy negotiation process.
The uncertainty around a possible deal continues to limit larger declines in oil prices.
