By Ayomide Otitoju
Crude oil prices edged lower on Monday, pressured by concerns over global economic stability following a U.S. credit downgrade and weaker-than-expected industrial data from China.
Brent crude futures for front-month delivery fell 37 cents, or 0.57%, to $65.04 per barrel as of 7:00 a.m. WAT. U.S. West Texas Intermediate (WTI) dropped 26 cents, or 0.4%, to $62.23 per barrel. The June WTI contract, which expires Tuesday, shed 31 cents to $61.66 for the more active July delivery.
The losses come after both benchmarks posted over 1% gains last week, buoyed by a 90-day truce in the U.S.-China trade dispute and reduced import tariffs between the world’s two largest economies and top oil consumers.
Moody’s cut the U.S. sovereign credit rating on Friday, citing mounting concerns over the nation’s $36 trillion debt, casting a shadow over President Donald Trump’s fiscal agenda and tax policies.
Meanwhile, China’s industrial output and retail sales growth slowed in April, according to official figures reported by Reuters. While the figures beat analysts’ expectations, they added to fears about China’s economic momentum amid ongoing trade uncertainty.
Despite last week’s tariff rollbacks, China’s economy remains exposed, with roughly 30% of its exports still facing significant U.S. duties. Analysts warn that Trump’s unpredictable policy shifts continue to weigh on investor confidence.
Geopolitical tensions also added to market uncertainty. In Europe, Moscow detained a Greek-owned oil tanker on Sunday after it departed from Estonia’s Baltic Sea port, heightening regional friction.
On the U.S. energy front, oil producers reduced the number of active rigs by one to 473 last week, the lowest level since January, according to Baker Hughes. Analysts say the decline reflects an industry-wide push to reduce capital expenditure and may slow domestic output growth.
Meanwhile, progress on U.S.-Iran nuclear talks remains unclear. U.S. Special Envoy Steve Witkoff said any deal must bar Iran from uranium enrichment, drawing swift criticism from Tehran.
