On Monday during the Asian trading session, oil prices slightly fell, continuing last week's downward trend. Concerns among traders regarding US-China trade frictions and the OPEC+ production increase plans keep oil prices fragile. Despite uncertainties in global economic growth, market concerns about weak demand remain significant, especially amid heightened US-China trade tensions.
Since the beginning of the year, oil prices have continuously plummeted, with US President Trump's tariff policies sparking worries about the global economy and crude demand. Trump's imposition of heavy tariffs on China, the world's largest crude importer, has further shaken market sentiment. Additionally, Trump's repeated calls for increased US oil production have heightened market concerns over excess oil supply.
Brent crude futures for June fell by 0.2% to $66.71 per barrel, while US WTI crude futures held steady at $62.91 per barrel at 10:01 AM Beijing time (10:01 PM Eastern Time).
The uncertainty surrounding US-China trade continues to pressure oil prices. Although Trump has claimed to engage in trade talks with China, US Treasury Secretary Scott Bessette stated on Sunday that he was unaware if Trump had spoken with China's top leaders or if any direct trade negotiations were underway. This statement contradicts Trump's earlier remarks, and Beijing has also indicated that no trade talks are happening. Such uncertainty has intensified market concerns over US-China trade frictions, especially following the heated tariff exchanges between the two countries in April.
Market traders are worried that trade-related disruptions will further weaken economic growth and suppress oil demand, thereby increasing downward pressure on oil prices.
Meanwhile, the oil market is closely watching the upcoming OPEC+ meeting. It is widely anticipated that OPEC member countries will continue increasing production for the second consecutive month to counteract the impact of low oil prices. OPEC+ is also responding to Trump's calls for boosting oil production and lowering oil prices by gradually relaxing the production cut policies implemented over the past three years.
