Oil prices slipped at the start of the week, pressured by renewed concerns over excess supply and slowing global demand as U.S.-China trade tensions intensified.
By 00:32 GMT, Brent crude futures were down 24 cents, or 0.4%, at $61.05 per barrel, while U.S. West Texas Intermediate futures fell 21 cents, or 0.4%, to $57.33, reversing Friday’s modest rally.
Both benchmarks lost more than 2% over the previous week, marking their third straight weekly decline. The slide followed International Energy Agency warnings of a widening supply glut in 2026.
“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,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“While the U.S. is stepping up pressure on buyers of Russian crude, the upcoming summit between U.S. 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.
Tensions between Washington and Beijing have flared up again, with both countries imposing additional port fees on shipments between them — a move that risks disrupting trade flows and adding pressure to global energy markets. The head of the World Trade Organization recently warned that prolonged decoupling between the two largest economies could slash global output by 7% over time.
Meanwhile, Trump and Putin agreed on Thursday to convene another summit to address the war in Ukraine, even as Washington intensified pressure on India and China to cut Russian oil imports.
Following talks at the White House with Ukrainian President Volodymyr Zelenskiy, Trump urged both Kyiv and Moscow to “stop the war immediately,” even if it involves territorial concessions from Ukraine.
Trade sources and analysts noted that U.S. and European pressure on Asian buyers could lower India’s Russian oil imports from December, potentially increasing discounted supply available to China.
On the production front, Baker Hughes Company said Friday that U.S. energy firms added oil and gas rigs for the first time in three weeks, hinting at a possible rebound in domestic output.
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