Oil tumbles further as US-China trade conflict fuels recession fears
Oil prices extended losses on Monday, falling around 2% as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for oil, while OPEC+ readies a supply increase.
Brent futures were down $1.17, or 1.78%, to $64.41 per barrel at 1303 GMT, and U.S. West Texas Intermediate crude futures were down $1.17, or 1.89%, at $60.82.
The Brent and WTI benchmarks’ intra-day lows of $62.51 and $58.95 respectively were their lowest since April 2021.
Oil plunged by 7% on Friday as China ramped up tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession. Last week, Brent and WTI lost 10.9% and 10.6%, respectively.
"The uncertainty around tariff policy - that’s still very present. You have a number of Wall Street banks slashing economic prospects and calling out much greater probabilities of recession," said Harry Tchilinguirian at Onyx Capital Group. "That’s really what’s driving sentiment.".
Source: Reuters
