Oil prices decline on U.S.-China trade dispute

Oil prices underperformed in the early trading session on Monday. Weak trading activity was mainly from investors’ dampened sentiment that the oil dispute between the United States and China will hinder economic recuperation as countries gradually lift lockdown restrictions.

U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped as low as $18.32 a barrel. It shed a total of 7.6% at 0008 GMT after recording an 18% increase last week.

Brent crude LCOc1 futures reached new depths following a 3.4% setback. It erased a total of 90 cents after increasing up to 23% last week.

Oil prices greatly advanced last week on optimism that major oil manufacturers led by Russia and Saudi Arabia will start reducing outputs on May 1. Moreover, Exxon Mobil Corp and Chevron Corp pledged to cut outputs by 400,000 barrels a day in the second quarter.

Lockdown lifting in some parts of the United States and output reduction were expected to resolve fuel surplus and problems on storage tanks.