Oil prices fell sharply in Asian trade on Monday, extending recent declines after U.S. President Donald Trump largely doubled-down on his recent trade tariffs, ramping up concerns over slowing economic growth and weakening demand.

China- the world's biggest oil importer- retaliated against Trump's tariffs over the weekend, while other majors such as the European Union outlined plans for retaliation, driving up concerns over a global trade war.

This notion had battered oil prices through the last week, as traders feared worsening economic growth, which could in turn dent global oil demand.

Brent oil futures fell 2.5% to $63.93 a barrel- their weakest level since April 2021, while West Texas Intermediate crude futures fell 2.4% to $60.16 a barrel by 21:31 ET (01:31 GMT).

Trump doubles down on tariffs, no deals until trade deficit fixed
Trump told reporters on Sunday evening that markets will have to treat the tariffs as "medicine," and that he had no plans to back off on his tariff plans.

Trump's recently unveiled round of reciprocal tariffs- which outline duties as high as 54% against China- are set to take effect from April 9.

The U.S. President said the tariffs were aimed at fixing the U.S. trade deficit with other major economies, and will remain in place until the deficit is "cured."

China retaliated against Trump's duties with 34% tariffs on all U.S. imports, while also decrying Trump's tariffs and threatening more measures.

Traders fear that Trump's tariffs will spark economic carnage across the globe, undermining growth and denting demand for oil.

Top oil importer China is also expected to be the worst hit by the new tariffs, which amount to a cumulative 54%.

Goldman Sachs slashes oil price forecasts on tariff jitters
Goldman Sachs had last week cut its 2025 Brent price average by 5.5% to $69/barrel, while WTI prices are expected to average at $66/barrel.

The investment bank cited heightened risks to oil from a brewing global trade war, which could trigger a recession.

Goldman Sacha also warned that any measures by the Organization of Petroleum Exporting Countries and allies (OPEC+), to increase production, stood to dent oil prices.

Several OPEC+ members recently outlined plans to increase production in May, catching markets off guard and raising concerns over even greater supplies in the coming months.

Oil was also spooked last week by data showing a substantially bigger-than-expected build in U.S. inventories.

Source: Investing.com