Oil prices continue to decline on Tuesday as global economic prospects weaken due to ongoing tariff disputes between the US and China.
International benchmark Brent crude fell by around 0.6%, trading at $64.21 per barrel at 09.50 a.m. local time (0650 GMT), down from $64.62 at the previous session's close.
US benchmark West Texas Intermediate declined by about 0.7%, reaching $61.23 per barrel, compared to its prior session close of $61.67.
On April 29, Beijing denied claims that Chinese President Xi Jinping had spoken with US President Donald Trump regarding tariffs. The denial has intensified fears of escalating trade wars, potentially weakening demand in the world's top oil-consuming and oil-importing nations.
Trump had earlier stated both in a Time magazine interview on April 25 and in remarks to reporters ahead of Pope Francis' funeral that he had spoken with President Xi and that details would be revealed in due time.
Amid a retaliatory tariff battle, the US raised duties on Chinese imports to 145%, while China responded with tariffs as high as 125%. While Washington postponed reciprocal tariffs on other countries by 90 days, measures against China have already taken effect.
The trade standoff is seen as a potential drag on global trade and could revive inflationary pressures. Should inflation rise, global demand may decline, adding further downward momentum to oil prices.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, plans to raise production in June.
Alongside weak demand projections, plans by OPEC+ to raise output are helping to ease global supply concerns, supporting the ongoing price slide.
The group, including eight member nations, is scheduled to meet on May 5 to review production plans for June.
In addition, Russia's announcement of a temporary ceasefire in Ukraine in observance of the 80th anniversary of its World War II victory has also eased geopolitical tensions, contributing to the downward trend in oil prices.
The Kremlin stated that President Vladimir Putin has declared a ceasefire from May 8 to May 11, during which all military operations will be halted.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr