Shafaq News/ Oil prices fell onMonday on concerns the escalating trade war between the United States and Chinawould weaken global economic growth and dent fuel demand.
Brent crude futures were down 29cents, or 0.45%, at $64.47 a barrel at 0126 GMT. U.S. West Texas Intermediatecrude futures were trading at $61.23 a barrel, down 27 cents, or 0.44%.
Both contracts have lost about $10 abarrel since the start of the month as a trade war between the world's twolargest economies has intensified.
Goldman Sachs expects Brent toaverage $63 and WTI to average $59 for the remainder of 2025 and sees Brentaveraging $58 and WTI $55 in 2026.
It sees global oil demand in thefourth quarter of 2025 rising by just 300,000 barrels per day year-on-year,"given the weak growth outlook," analysts led by Daan Struyven saidin a note, adding that the demand slowdown is expected to be the sharpest forpetrochemical feedstocks.
Beijing increased its tariffs onU.S. imports to 125% on Friday, hitting back against President Donald Trump'sdecision to raise duties on Chinese goods and raising the stakes in a trade warthat threatens to upend global supply chains.
Trump on Saturday granted exclusionsfrom steep tariffs on smartphones, computers and some other electronics largelyimported from China, but U.S. Commerce Secretary Howard Lutnick on Sunday saidthat critical technology products from China would face separate new dutiesalong with semiconductors within the next two months.
The trade war has heightened worriesthat unsold exports could continue driving domestic Chinese prices down.
"Inflation data from China werea window into an economy that is not in shape for a trade fight. Consumerprices fell for a second month in a row in year-on-year terms, while producerprices chalked up their 30% straight fall," Moody's Analytics said in aweekly note, referring to data released on April 10.
As companies prepare for a possibledecline in demand, U.S. energy firms last week cut oil rigs by the most in aweek since June 2023, lowering the total oil and natural gas rig count for athird consecutive week, according to Baker Hughes.
Potentially supporting oil prices,U.S. Energy Secretary Chris Wright said on Friday that the United States couldstop Iran's oil exports as part of Trump's plan to pressure Tehran over itsnuclear programme.
Both countries held"positive" and "constructive" talks in Oman on Saturday andagreed to reconvene next week in a dialogue meant to address Tehran'sescalating nuclear programme, officials said over the weekend.
(REUTERS)