Oil prices are declining amid concerns of weakening global growth due to the trade escalation between China and the United States.

Oil prices retreated on Monday due to concerns that the escalating trade war between China and the United States will weaken global economic growth and undermine fuel demand. Brent crude futures fell 29 cents or 0.45 percent to $64.47 a barrel. West Texas Intermediate crude futures dropped 27 cents or 0.44 percent to $61.23 a barrel. Both crude types have lost around ten dollars per barrel since the beginning of the month amid the escalating trade war between the world's two largest economies. Goldman Sachs expects Brent crude to average $63 per barrel and West Texas Intermediate to average $59 per barrel for the rest of the current year, with Brent at $58 per barrel and West Texas Intermediate at $55 per barrel in 2026. Analysts led by Dan Struyven stated in a note that the bank anticipates a 300,000 barrels per day increase in global oil demand in the fourth quarter of the current year on an annual basis due to weak growth expectations, with a more pronounced slowdown expected in petrochemical feedstocks. Beijing raised tariffs on U.S. imports to 125 percent on Friday in response to President Donald Trump's decision to increase tariffs on Chinese goods, escalating a trade war that threatens to disrupt the global economy.