NEW DELHI- Oil prices slid more than 3 percent on Monday, extending last week’s losses, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.
Brent futures declined $1.41, or 2.15 percent, to $64.17 a barrel while US West Texas Intermediate crude futures lost $1.35, or 2.18 percent, to $60.64. At the session low, both benchmarks were down over 3 percent and hit their lowest levels since April 2021.
Oil plunged 7 percent on Friday as China ramped up tariffs on US goods, escalating a trade war that has led investors to price in a higher probability of recession. Last week, Brent lost 10.9 percent, while WTI dropped 10.6 percent.
“It’s hard to see a floor for crude unless the panic in the markets subsides and it’s hard to see that happening unless Trump says something to arrest snowballing fears over a global trade war and recession,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Responding to US President Donald Trump’s tariffs, China said on Friday it would impose additional levies of 34 percent on American goods, confirming investor fears that a full-blown global trade war is underway.
