Oil prices fell more than 3% on Monday, extending losses from the previous week, on growing concerns that a global trade war could slow the global economy and weaken oil demand, following China’s retaliation against U.S. President Donald Trump’s tariffs.
Brent futures declined $2.1, or 3.2%, to $63.48 a barrel at 1027 GMT, while U.S. West Texas Intermediate crude futures lost $2.14, or 3.5%, to $59.85.
Both benchmarks plunged 7% on Friday to settle at their lowest in over three years 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.
Responding to Trump’s tariffs, China on Friday said it would impose additional levies of 34% on American goods, confirming investor fears that a full-blown global trade war is under way and that the global economy may be at risk of a recession.
Investment bank JPMorgan said it now sees a 60% chance of a global economic recession by year-end, up from 40% previously.
(Reporting by Yuka Obayashi Editing by Nick Zieminski)