NNA - Oil prices slid more than 3 per cent on Monday, deepening last week's losses, as escalating trade tensions between the United States and China stoked fears of a recession that would reduce demand for crude.

Brent futures declined $2.28, or 3.5 per cent, to $63.30 a barrel at 0049 GMT, while US West Texas Intermediate crude futures lost $2.20, or 3.6 per cent, to $59.79. At the session low, both benchmarks hit their lowest since April 2021.

Oil plunged 7 per cent on Friday as China ramped up tariffs on US goods, escalating a trade war that has led investors to price in a higher probability of recession. Over the past week, Brent lost 10.9 per cent, while WTI dropped 10.6 per cent.

"The primary driver of the decline is concern that tariffs will weaken the global economy," said Satoru Yoshida, a commodity analyst with Rakuten Securities.

"Additionally, a planned production increase by OPEC+ is also contributing to the selling pressure," he said, adding that retaliatory tariffs from countries beyond China will be a key factor to watch.

Yoshida predicted that WTI could fall to $55 or even $50 if stock market declines persist.--Reuters 

==========R.H.