Oil prices fell nearly 1% on Monday, June 3rd increasing losses of more than 3% since Friday May 31st, when crude prices made the biggest monthly loss in six months amid a slump in demand as commercial wars fuelled fears of a global economic slowdown, Reuters has reported.
Brent crude for July delivery was $61.28 a barrel, down 71 cents, or 1.1%, from Friday May 31st’s close.
US West Texas Intermediate crude futures were $53.09 a barrel, down 41 cents, or 0.8%, from the previous settlement price. The decline comes after the price fell more than 3% on Friday 31st, making May the worst month for crude futures since November. "Oil prices are falling due to new trade tensions after US President Donald Trump raised global trade tensions by threatening to impose tariffs on Mexico, one of the largest trading partners of the United States and a major supplier of crude oil," said Methone Fernando, investment analyst at Rivkin Securities, in a note.
In a traditional move to financial markets during foggy times, gold rose to its highest level in more than two months as investors sold high-risk assets such as oil and put their money into safe haven assets, such as the precious metal.
US consumption of oil in March, "fell significantly on an annualised basis for the first time since September 2017 ... as demand for oil fell about 370,000 bpd on an annualised basis," Barclays said in a note published on May 31st.