Oil prices experienced a decline on Monday, influenced by concerns regarding a global oversupply amid escalating U.S.-China trade tensions that have contributed to fears of an economic slowdown and reduced energy demand.
As of 0610 GMT, Brent crude futures fell by 53 cents, or 0.86%, settling at $60.76 per barrel, while U.S. West Texas Intermediate futures decreased by 55 cents, or 0.96%, to $56.99, reversing gains made on Friday. Both benchmarks had dropped more than 2% in the preceding week, marking a third consecutive weekly decline, partly attributed to the International Energy Agency’s forecast of a growing supply surplus anticipated by 2026.
Toshitaka Tazawa, an analyst at Fujitomi Securities, stated, “Concerns about oversupply from increased production by oil-producing nations, coupled with fears of an economic slowdown stemming from escalating U.S.-China trade tensions, are fuelling selling pressure.”
According to data released on Monday by China’s statistics bureau, the nation’s economic growth slowed to its weakest level in a year during the third quarter, primarily due to diminishing domestic demand. This situation raises concerns about China’s reliance on exports amid ongoing trade disputes with the U.S.
The head of the World Trade Organization indicated last week that she had urged both the U.S. and China to ease trade tensions, cautioning that a decoupling of the world’s two largest economies could lead to a 7% decline in global economic output in the long term. Recently, the two leading oil consumers have escalated their trade war, imposing additional port fees on cargo ships operating between the countries—moves that could disrupt international shipping routes.
Uncertainty persists regarding Russian oil supplies, particularly as U.S. President Donald Trump reiterated on Sunday that Washington would maintain significant tariffs on India unless it ceases importing Russian oil. Concurrently, Trump and Russian President Vladimir Putin agreed to organize another summit concerning the Ukraine conflict, despite ongoing U.S. pressure on both India and China to halt Russian oil purchases.
Following discussions with Ukrainian President Volodymyr Zelenskiy at the White House on Friday, Trump urged both nations to “stop the war immediately,” even if it necessitated Ukraine conceding territory.
Pressure from the U.S. and European nations on Asian buyers of Russian energy could potentially limit India’s oil imports beginning in December, which may lead to lower supply costs for China, according to trade sources and analysts.
On the supply front, U.S. energy companies added oil and natural gas rigs last week for the first time in three weeks, as reported by energy services firm Baker Hughes in its widely monitored report issued on Friday.
Published on October 20, 2025.
