Oil prices decline amid concerns over slowing global economic growth

Oil prices are moderately declining due to concerns over escalating trade tensions between the US and China, the threat of slowing global economic growth, and a possible drop in fuel demand. On Monday, Brent and WTI crude oil benchmarks pulled back from Friday's highs. Brent traded around $64.55 a barrel, while WTI fell to $61.19. According to Reuters, since the beginning of May, they have lost about 10 dollars per barrel.

The ongoing trade conflict between the United States and China, characterized by a mutual increase in tariffs, has already contributed to a significant drop in oil prices this month. Reflecting the weak outlook, Goldman Sachs lowered its oil price forecasts for 2025 and 2026, expecting a slowdown in energy demand growth.

As Moody's Analytics notes, updated data from China showing a drop in consumer and producer prices is adding to concerns about the health of the global economy.

Reuters reports US energy firms cut oil rigs last week at the sharpest rate since June 2023 amid softening demand.