Oil prices edged slightly lower on Monday as concerns about economic growth in the United States and China—two of the world’s largest oil consumers—weighed on market sentiment.
The decline followed Moody’s downgrade of U.S. sovereign credit and fresh data from China showing slower-than-expected growth in both industrial output and retail sales. These developments raised renewed doubts about the global demand outlook, just a week after optimism over U.S.-China tariff rollback plans had lifted oil markets.
“The weaker-than-expected Chinese data is not helping crude oil, although I’d describe the setback as modest,” said Giovanni Staunovo, analyst at UBS.
As of 12:55 GMT, Brent crude futures slipped 14 cents (0.2%) to $65.27 per barrel, while U.S. West Texas Intermediate (WTI) dropped 5 cents (0.1%) to $62.45. The nearby WTI June contract expires on Tuesday.
Both benchmarks posted over 1% gains last week.
Market pressure was also amplified by U.S. Treasury Secretary Scott Bessent’s warning that the White House may follow through with new tariffs unless trading partners engage in “good faith” negotiations.
“Today’s softness reflects crude’s ongoing volatility, with the Moody’s downgrade and Bessent’s comments driving the latest dip,” said Ole Hansen of Saxo Bank.
Despite the downbeat signals, China’s industrial performance in April exceeded some economists’ expectations, offering a small offset to broader concerns.
Meanwhile, attention remains on U.S.-Iran nuclear talks, where uncertainty is keeping oil prices from falling further. U.S. Special Envoy Steve Witkoff stated on Sunday that any potential deal must include a commitment from Iran to halt uranium enrichment—a demand that quickly drew criticism from Tehran.
“These negotiations are far from straightforward and could stretch on for months,” noted John Evans, analyst at oil brokerage PVM.