Oil prices fell on Monday amid fears of a global supply surplus, as escalating trade tensions between the US and China heightened concerns about slowing economic growth and declining energy demand, UNN reports with reference to Reuters.
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Brent crude futures fell 24 cents, or 0.4%, to $61.05 a barrel by 00:32 GMT (03:32 Kyiv time), while US West Texas Intermediate crude futures fell 21 cents, or 0.4%, to $57.3.
Last week, both benchmarks fell by more than 2%, marking a third consecutive weekly decline, partly due to the International Energy Agency's forecast of a supply surplus in 2026.
Concerns about oversupply due to increased production by oil-producing countries, combined with fears of an economic downturn caused by escalating trade tensions between the US and China, are fueling pressure on sellers.
"While the US is increasing pressure on buyers of Russian oil, the upcoming summit between US President Donald Trump and Russian President Vladimir Putin adds uncertainty to the outlook, making it difficult for some investors to adjust their positions," he said.
Last week, the head of the World Trade Organization said she had urged the US and China to de-escalate trade tensions, warning that a decoupling of the world's two largest economies could lead to a 7% reduction in global economic output in the long run.
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The two largest oil consumers recently resumed their trade war, imposing additional port fees on ships carrying goods between them – retaliatory measures that could disrupt global shipping.
Meanwhile, Trump and Putin agreed on Thursday to hold another summit on the war in Ukraine, despite Washington pressing India and China to stop buying Russian oil.
After talks with Ukrainian President Volodymyr Zelenskyy at the White House on Friday, Trump called on Ukraine and Russia to "immediately end the war."
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According to trading sources and analysts, US and European pressure on Asian buyers of Russian energy could limit oil imports to India from December, leading to cheaper supplies to China.
India cut Russian oil imports by 50% after talks with US - Reuters16.10.25, 23:59
Regarding supply, US energy companies last week increased the number of oil and natural gas drilling rigs for the first time in three weeks, energy services firm Baker Hughes said in its closely watched report on Friday.