Oil prices have declined amid concerns over an economic slowdown and the ongoing trade war between China and the US.

International benchmark Brent crude futures were down 13 cents at $58.40 a barrel, while the US West Texas Intermediate (WTI) futures declined 17 cents at $54.33 per barrel, Reuters reported.

OANDA Toronto senior market analyst Alfonso Esparza was quoted by the news agency as saying: “Oil prices are falling at the start of the trading week due to lower demand forecasts published last week and pessimism about a US-China trade deal.”

Last week, the trade war between the US and China rocked equity markets across the globe.

Due to a surprise increase in US inventories, oil prices declined and lost around 20% from the 2019 peaks reached in April.

Goldman Sachs said in a note that fears of the Sino-US trade war leading to a recession were on the rise and a trade deal between the two countries is expected to take place before the US presidential election next year.

The International Energy Agency (IEA) cut the global oil demand growth forecast for this year and 2020 to 1.1 million and 1.3 million barrels per day (Mbpd), respectively.

Two industry sources familiar with the energy ministry data said that elsewhere, oil production in Russia increased to 11.32Mbpd on 1 to 8 August, a rise from 11.15Mbpd on average last month.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to the extension of their supply cuts until March next year to revive oil prices.