Oil prices held a four-day decline as investors shrugged off President Donald Trump's threat to impose secondary tariffs on Russian energy buyers, while US data pointed to weaker conditions in the world's largest economy.

West Texas Intermediate crude traded near $65 a barrel after falling nearly 7% over four sessions, while Brent closed below $68. Trump hinted at higher tariffs on countries buying oil from Moscow possibly including China after saying he would raise levies on Indian exports within 24 hours.

US special envoy Steve Witkoff is expected to travel to Russia to meet with officials this week, ahead of Trump's August 8 deadline for Moscow to reach a ceasefire with Ukraine. The Kremlin is considering options for concessions that could include an air truce, though it remains determined to continue the war.

Oil prices edged lower after three months of gains, with focus on growth headwinds in the US that could hurt energy demand, as well as OPEC+'s move to ease production curbs. Late last week, the alliance agreed to increase production starting in September by about 547,000 barrels per day, raising concerns that global supply will outpace consumption in the second half of the year.

In the US, data showed the services sector effectively stagnated in July, in line with other signs that the economy is showing warning signs. Last week's figures pointed to a much weaker labor market than previously thought.

Meanwhile, oil industry estimates paint a mixed picture regarding US stockpiles. National crude oil holdings fell by 4.2 million barrels last week, although oil reserves at the key hub in Cushing, Oklahoma, rose, along with distillate inventories. Official details will be released Wednesday evening. (alg)

Source: Bloomberg