Crude prices slid further on Monday, extending last week’s sharp losses as mounting U.S.-China trade tensions sparked recession fears and weakened the demand outlook. Brent and WTI both hit their lowest levels since April 2021, falling nearly 4% on the day and adding to Friday’s 7% plunge. Traders continue to price in the economic drag from escalating tariffs and the potential for a global slowdown.
At 09:52 GMT, Light Crude Oil Futures are trading $59.82, down $2.17 or -3.90%.
Investor sentiment has turned firmly bearish as recession warnings multiply. Goldman Sachs now places a 45% chance on a U.S. recession over the next 12 months, while JPMorgan pegs the global and U.S. risk at 60%. This economic pessimism has triggered a broad re-evaluation of oil prices projections, with major banks downgrading their outlooks.
On top of that, Federal Reserve Chair Jerome Powell warned that Trump’s tariffs are “larger than expected,” with economic fallout likely to follow. Although oil and gas imports have been exempt from the new levies, traders are concerned that slower global growth and weaker industrial demand will still significantly dampen crude consumption.
In a clear signal of softening demand, Saudi Arabia slashed its official selling prices to Asian buyers to the lowest in four months. The move follows a notable decline in Asia’s Q1 crude imports, which averaged 26.44 million barrels per day (bpd)—down 640,000 bpd from the same period last year. While March showed a rebound to 27.39 million bpd, analysts attribute the gain largely to restocking and opportunistic buying as prices dropped.
Meanwhile, OPEC+ surprised markets by boosting its May supply increase to 411,000 bpd, up from the prior plan of 135,000 bpd. Ministers also reiterated their demand for compliance and compensation from overproducing members, but the move still signals a more aggressive return of barrels into an already fragile demand environment.
Even with Brent dipping as low as $63.01 in early Monday trading—a 16.5% fall from the April 2 peak—lower prices may not be enough to trigger sustainable buying from Asia. China’s March crude arrivals showed improvement, but the gains followed earlier inventory draws and likely won’t repeat unless prices remain subdued.
The oil market is now driven by fears that trade conflicts will significantly drag down global growth and fuel demand. Despite cheaper crude and signs of restocking, the broader demand outlook remains weak. With recession risks rising and OPEC+ supply growing, the oil price forecast remains bearish in the near term.
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James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.