NEW YORK: Oil prices fell about 3% to a two-week low on Monday, pressured by losses in Wall Street technology and energy stocks, as investors took cover after news of surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence model.
Oil was already down earlier in the session on weak economic data from China and worries that US President Donald Trump’s proposed tariffs could further pressure economic growth and energy demand.
Brent futures fell $2.00, or 2.6%, to $76.50 a barrel by 12:02 p.m. EST (1702 GMT). US West Texas Intermediate (WTI) crude fell $2.06, or 2.8%, to $72.60.
Brent was on track for its lowest close since Jan. 8 and WTI for its lowest since Dec. 31.
Analysts have said oil prices have been depressed in recent days following Trump’s call last week for the Organization of the Petroleum Exporting Countries (OPEC) to reduce oil prices.
“President Trump continued to put the pressure on OPEC … calling on the producer group to lower prices to help end the Russian war in Ukraine,” Bob Yawger, director of energy futures at Mizuho, said in a report.
OPEC and its allies including Russia in the OPEC+ group have yet to react to Trump’s call, with OPEC+ delegates pointing to an existing plan to start raising oil output from April.
President Trump’s tariff threats have also mostly pressured oil prices, feeding worries that a trade war could hurt global economic growth and oil demand.
Over the weekend, the US threatened and then swiftly reversed plans to impose sanctions and tariffs on Colombia after the South American nation agreed to accept deported migrants from the US
Colombia last year sent about 41% of its seaborne crude exports to the US, data from analytics firm Kpler shows. The agreement will allow that oil to continue to flow, another factor pressuring crude prices on Monday.
“There is broad-based negative sentiment in the market. Even if the sanctions didn’t take place, this still creates nervousness that Trump will bully whoever needs to be bullied to get his way,” said Bjarne Schieldrop, chief commodities analyst at SEB.
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