SINGAPORE- Oil prices fell more than 1.5 percent on Monday as investors once again focused on concerns US tariffs on its trading partners will create economic headwinds that will reduce fuel demand growth.
Brent crude futures LCOc1 slipped $1.10, or 1.6 percent, to $66.86 a barrel after closing up 3.2 percent on Thursday. US West Texas Intermediate crude CLc1 was at $63.57 a barrel, down $1.11, or 1.7 percent, after settling up 3.54 percent in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday.
“The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+,” said IG market strategist Yeap Jun Rong.
OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to hike output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas.
Prices also declined as some supply worries eased following signs of progress in nuclear talks between the United States and Iran progressed on Saturday.
