Investing.com-- Oil prices fell slightly in Asian trade on Monday, extending last week’s losses as traders remained on edge over a U.S.-China trade war and OPEC+ plans to increase production.
Prices remained fragile amid persistent concerns over weaker demand, especially in the face of a a bitter U.S.-China trade war, which showed little signs of deescalation. Markets also remained uncertain over trade talks between the two, following mixed signals from Washington and Beijing.
Oil prices were nursing steep declines this year, as U.S. President Donald Trump’s tariff agenda drummed up concerns over the global economy and demand for crude. Trump’s steep tariffs on top oil importer China also rattled sentiment.
Concerns over increased oil production under Trump, who has repeatedly called for lower energy prices, also weighed on crude in recent months.
Brent oil futures for June fell 0.2% to $66.71 a barrel, while West Texas Intermediate crude futures were flat at $62.91 a barrel by 22:01 ET (02:01 GMT).
Trump’s comments on Russia-Ukraine ceasefire talks also gave no clear signals on whether a deal was close.
US-China trade uncertainty persists
Uncertainty over U.S.-China trade negotiations remained the biggest weight on oil prices, following more mixed signals on whether talks were taking place.
U.S. Treasury Secretary Scott Bessent on Sunday said he did not know whether Trump had spoken directly with Chinese President Xi Jinping, and that he was not aware of any direct trade talks taking place.
Bessent’s comments contradicted Trump’s claims that talks with China were taking place. Beijing had also said last week that no trade talks were taking place.
This uncertainty added to concerns over a Sino-U.S. trade war, especially as the world’s biggest economies engaged in a bitter tariff exchange through April.
Traders fear that trade-related disruptions will dent economic growth and stymie demand for oil.
OPEC+ output hike in focus as meeting looms
Oil markets were also awaiting a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), which is set to take place next week.
Members of the cartel are widely expected to increase production for a second consecutive month, with higher production volumes expected to help offset the impact of lower prices.
OPEC+ has also been increasing production in line with Trump’s calls for higher output and lower oil prices. The cartel is in the process of steadily scaling back production cuts from the past three years.