Brent crude oil prices fell by $1.01, or 1.5%, to $65.86 per barrel on Monday due to economic concerns stemming from the US-China trade war.

US West Texas Intermediate (WTI) crude also dropped by 1.5%, settling at $62.05 per barrel, as conflicting reports emerged from the US and China on the progress of trade negotiations.

Analysts suggest the US-China trade war is the primary factor driving oil price movements, overshadowing other market developments like US-Iran nuclear talks and OPEC+ dynamics.

China criticized the US for its tough negotiating stance, accusing the country of bullying and reneging on promises.

Meanwhile, US Treasury Secretary Scott Bessent denied President Trump’s claims that China negotiations were ongoing.

In China, crude oil inventories hit a nearly three-year high in March, signaling that demand growth was lagging despite refinery activity reaching a one-year peak.

OPEC+ may consider accelerating oil output hikes when they meet on May 5, following an unexpected decision to raise output by 411,000 barrels per day earlier this month.