Oil prices dropped on Monday, weighed down by concerns over a global supply glut, while escalating trade tensions between the United States and China heightened fears of an economic slowdown and weaker energy demand.
اضافة اعلان
Brent crude futures fell 24 cents, or 0.4%, to $61.05 per barrel by 00:32 GMT, while U.S. West Texas Intermediate (WTI) futures dropped 21 cents, or 0.4%, to $57.33, erasing gains made on Friday.
Both benchmark crudes fell more than 2% last week, marking their third consecutive weekly decline, partly due to International Energy Agency (IEA) forecasts of rising oversupply in 2026.
Toshitaka Tazawa, an analyst at Fujitomi Securities, said:
“Concerns over supply glut and an economic slowdown caused by rising U.S.-China trade tensions are fueling selling pressure.”
He added:
“As the U.S. increases pressure on Russian crude buyers, the anticipated summit between Presidents Donald Trump and Vladimir Putin adds uncertainty to the outlook, making it difficult for some investors to adjust their positions.”
Last week, the WTO chief urged the U.S. and China to ease trade tensions, warning that decoupling the world’s two largest economies could reduce global output by 7% over the long term. The world’s top two oil consumers recently reignited their trade war by imposing additional port tariffs on shipments between them, a move that could disrupt global shipping flows.
Meanwhile, Trump and Putin agreed last Thursday to hold another summit on the Ukraine war, even as Washington pressured India and China to halt purchases of Russian oil.
After meeting Ukrainian President Volodymyr Zelensky at the White House on Friday, Trump called on both Ukraine and Russia to “stop the war immediately”, even if it meant Ukraine conceding territory.
Traders and analysts noted that U.S. and European pressure on Asian buyers of Russian energy could restrict India’s oil imports starting in December, potentially lowering supplies to China.
On the supply side, Baker Hughes reported that U.S. energy companies increased oil and gas rigs last week for the first time in three weeks.
(Agencies)
