Oil price heading towards $60 per barrel

Oil prices extended losses on Monday, falling more than 2% as escalating trade tensions between the U.S. and China stoked fears of a recession that would reduce demand for crude while OPEC+ readies a supply increase.

The price of futures contracts of Brent crude oil for June 2025 delivery has dropped below $63 per barrel on London's ICE for the first time since April 12, 2021, according to trading data.

As of 10:08 a.m. Moscow time (7:08 a.m. GMT) the Brent price was down by 4.36% at $62.72 per barrel.

By 10:30 a.m. Moscow time (7:30 a.m. GMT) the price of Brent futures contracts had narrowed losses to 4.33% trading at $62.74 per barrel. Meanwhile the price of futures contracts of WTI crude oil for May 2025 delivery was down by 4.53% at $59.18 per barrel.

Oil plunged by 7% on Friday as China ramped up tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession. Last week, Brent and WTI lost 10.9% and 10.6%, respectively.

Saudi Arabia on Sunday announced sharp cuts to crude oil prices for Asian buyers, dropping the price in May to the lowest level in four months.

The OPEC+ group now aims to return 411,000 barrels per day to the market in May, up from the previously planned 135,000 bpd. OPEC+ ministers emphasised the need for full compliance with oil output targets and called for over-producers to submit plans by April 15 to compensate for pumping too much.