Oil prices slipped on Monday, weighed down by renewed concerns over global economic stability. The drop followed Moody’s downgrade of the U.S. sovereign credit rating and fresh signs of slowing momentum in China’s economy.
Brent crude futures were down 51 cents to $64.90 a barrel, while U.S. West Texas Intermediate dipped 45 cents to $62.04 ahead of the June contract’s expiry.
The decline comes just days after oil saw a brief lift, following a temporary truce on trade tariffs between the U.S. and China, both top global oil consumers.
Analysts say Moody’s downgrade isn’t likely to directly impact oil demand, but it has shaken market confidence amid rising anxiety over America’s $36 trillion debt. Meanwhile, weaker-than-expected industrial output and retail sales in China are further dampening demand prospects.