Oil prices flat as US-China trade war weighs on global growth outlook

Brent crude futures were up 4 cents, or 0.06%, at $64.80 a barrel at 0009 GMT. U.S. West Texas Intermediate crude futures were trading at $61.53 a barrel, up 3 cents, or 0.05%.

Beijing increased its tariffs on U.S. imports to 125% on Friday, hitting back against President Donald Trump’s decision to raise duties on Chinese goods and raising the stakes in a trade war that threatens to upend global supply chains.

Trump on Saturday granted exclusions from steep tariffs on smartphones, computers and some other electronics largely imported from China, but U.S. Commerce Secretary Howard Lutnick on Sunday said that critical technology products from China would face separate new duties along with semiconductors within the next two months.

The trade war has heightened worries that unsold exports could continue driving domestic Chinese prices down.

Live Events

“Inflation data from China were a window into an economy that is not in shape for a trade fight. Consumer prices fell for a second month in a row in year-on-year terms, while producer prices chalked up their 30% straight fall,” Moody’s Analytics said in a weekly note, referring to data released on April 10. As companies prepare for a possible decline in demand, U.S. energy firms last week cut oil rigs by the most in a week since June 2023, lowering the total oil and natural gas rig count for a third consecutive week, according to Baker Hughes. Potentially supporting oil prices, U.S. Energy Secretary Chris Wright said on Friday that the United States could stop Iran’s oil exports as part of Trump’s plan to pressure Tehran over its nuclear programme.

Both countries held “positive” and “constructive” talks in Oman on Saturday and agreed to reconvene next week in a dialogue meant to address Tehran’s escalating nuclear programme, officials said over the weekend.