Oil prices held steady on Monday as exemptions for some electronics goods from U.S. tariffs and data showing a sharp rebound in China’s crude imports in March, were outweighed by concerns that the trade war could weaken global economic growth and dent fuel demand.
Brent crude futures were flat at $64.76 at 11:19 a.m. ET (1519 GMT). U.S. West Texas Intermediate crude were down 13 cents, or 0.2%, at $61.37.
“The OPEC cutting its global demand forecast just underscores the troubled outlook we have here from the tariffs and all the other uncertainty in the market,” said John Kilduff, partner with Again Capital, referring to OPEC revising down its demand forecast in a report released on Monday.
“Markets are still continuing to sort out the impact of the tariffs and this escalation with China,” Kilduff said.
Late on Friday U.S. President Donald Trump’s administration granted exclusions from steep tariffs on smartphones, computers and some other electronic goods imported largely from China. It was the latest in a series of policy announcements that imposed tariffs and then walked them back, spurring uncertainty for investors and businesses.
Trump said on Sunday that he would announce the tariff rate on imported semiconductors over the next week.
Meanwhile, China’s crude oil imports in March rebounded sharply from the previous two months and were up nearly 5% from a year earlier, data showed on Monday, boosted by Iranian oil and a rebound in Russian deliveries.
However, Brent and WTI have lost about $10 a barrel since the start of the month and analysts have lowered oil price forecasts as the trade war between the world’s two largest economies has intensified.
The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report on Monday that global oil demand will rise by 1.3 million barrels per day (bpd) in 2025, down by 150,000 bpd from last month’s forecast, citing trade tariffs among the reasons.
Goldman Sachs expects Brent to average $63 and WTI to average $59 for the remainder of 2025, with Brent averaging $58 and WTI $55 in 2026.
It sees global oil demand in the fourth quarter of 2025 rising by only 300,000 bpd year on year, analysts led by Daan Struyven said in a note, adding that slowing demand is expected to be most pronounced for petrochemical feedstocks.
UBS reduced its Brent forecasts by $12 a barrel to $68 a barrel. At the same time, they expect WTI to trade at $64 a barrel.
The Brent price spread between December 2025 and December 2026 has also flipped into contango as investors have priced in oversupply and demand concerns, said BMI, part of Fitch Solutions. In a contango market, front-month prices are lower than those in future months, indicating no shortage of supply.
