Oil prices extend losses on fears global trade war could slow economy

TOKYO – 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 US President Donald Trump’s tariffs.

Brent futures declined USD 2.1, or 3.2%, to USD 63.48 a barrel at 2227 GMT, while US West Texas Intermediate crude futures lost USD 2.14, or 3.5%, to USD 59.85.

Both benchmarks plunged 7% on Friday to settle at their lowest in over three years as China ramped up tariffs on US 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 underway 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)