Oil prices dropped by more than 3 percent on Monday, continuing the downward trend from the previous week.
Concerns are mounting that a global trade war could further hinder economic growth and diminish oil demand.
According to a report by Reuters, Brent crude futures fell by $2.10, or 3.2 percent, reaching $63.48 a barrel at 10:27 GMT. Meanwhile, U.S. West Texas Intermediate crude futures decreased by $2.14, or 3.5 percent, settling at $59.85.
Both benchmarks experienced a significant decline of 7 percent on Friday, marking their lowest levels in over three years, as China increased tariffs on U.S. goods in response to Donald Trump’s tariffs, as reported by Reuters.
China’s actions could escalate the trade war, prompting investors to factor in a higher likelihood of recession.
It was previously reported that China quickly retaliated to Trump’s tariffs by announcing additional levies of 34 percent.
This reinforces investors’ concerns that a full-scale global trade war is in progress.
Investment bank JPMorgan has increased its forecast for a global economic recession by year-end to a 60 percent likelihood, up from the previous estimate of 40 percent.
