Oil prices fell 3 percent on Monday, echoing the weakness in global stock markets as the focus returned to demand growth concerns. Crude prices erased the gains they made on Friday following an OPEC-led decision to cut output.
Losses in Europe and Asia extended to Wall Street on new signs the U.S.-China trade spat was impacting world economic growth.
The market was also weighed down by confusion stemming from British Prime Minister Theresa May’s postponement of a parliamentary vote on her Brexit deal and sluggish data from the world’s largest economies including the U.S, China, Japan and Germany in recent days.
“The stock market and oil market correlation is back on today,” said John Kilduff, a partner at Again Capital Management in New York. “These worries about the global economy and the demand outlook that follows on that for oil are a bigger and bigger negative for the market.”
U.S. West Texas Intermediate crude ended Monday’s session down $1.61, or 3.1 percent, at $51 a barrel. International Brent crude oil futures fell $1.68, or 2.7 percent, to $59.99 a barrel by 2:20 p.m. ET.