Oil prices extended their losses on Monday, falling by more than 2%, as escalating trade tensions between the United States and China fuelled fears of a recession that would reduce demand for crude while OPEC+ prepares for an increase in supply.

Brent and WTI benchmark prices have both fallen to their lowest levels since April 2021. Brent futures were down $1.61, or 2.5%, to $63.97 per barrel at 13:01 GMT and US West Texas Intermediate crude futures were down $1.64, or 2.7%, to $60.35

Oil fell 7% on Friday as China tightened its tariffs on American products, worsening the trade war that led investors to anticipate an increased likelihood of a recession. Last week, Brent and WTI lost 10.9% and 10.6% respectively