Brent crude oil prices fell more than $1 a barrel on Monday as economic concerns over the U.S.-China trade war weighed on demand.

Brent crude futures settled at $65.86 a barrel, down $1.01, or 1.51%. U.S. West Texas Intermediate crude futures settled at $62.05 a barrel, down 97 cents, or 1.545%.

Brent crude prices edged up in the previous two sessions, but ended Friday with a weekly loss of more than 1%.

The U.S.-China trade war is dominating investor sentiment in driving oil prices, said analyst John Evans of brokerage PVM, overtaking nuclear talks between the U.S. and Iran and disagreements within the OPEC+ coalition. "The wait-and-see attitude that's coming out of these U.S.-China talks is leaving a bad impression on people's minds," said Gary Cunningham, director of market research for Tradition Energy. "If the talks go badly, you could see a decline in demand for oil from China." Markets have been rattled by conflicting signals from U.S. President Donald Trump and Beijing over what progress is being made to defuse a trade war that could hurt global growth.

In the latest comments from Washington, U.S. Treasury Secretary Scott Bessent on Sunday backed Trump's assertion that negotiations with China were underway. Beijing had previously denied any talks were underway. "A lot of the feeling in the market is how is it going to play out in the next 24 to 48 hours?" said Phil Flynn, senior analyst at Price Futures Group. "Are we going to bomb Iran? Is China going to buy more crude?" Some members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, are expected to suggest the group accelerate oil output increases for a second straight month when they meet on May 5.

"Sentiment has turned more pessimistic since our forecast last month with more aggressive OPEC+ easing – and accompanying doubts about unity within the cartel – the main change," BNP Paribas analyst Aldo Spanjer said in a note.

BNP Paribas expects Brent to hover in the $60s a barrel in the second quarter of this year, the note said.

Meanwhile, Iranian Foreign Minister Abbas Araqchi said he remained "very cautious" about the success of the negotiations, as nuclear talks between Iran and the United States in Oman continued this week.

In Iran, a massive explosion at its largest port in Bandar Abbas has killed at least 40 people, with more than 1,200 injured, state media reported on Sunday. (Newsmaker23)

Source: Reuters