U.S. oil prices fell about 2% on Monday, adding to huge losses for fear of President Donald Trump last week Global tariffs It will put the United States, perhaps the world, into recession.

USA. CrudeOil fell $1.29, or 2.08%, to close at $60.70 per barrel, while Brent lost $1.37, or 2.09%, to price at $64.21. The latest price action comes after U.S. crude and Brent closed more than 10% last week.

Futures and American West Texas Intermediate Crude Oil At the low of $58.95 per barrel, it was the lowest since 2021. Global Benchmarks Brent It fell to an intraday low of $62.51.

Key Opec+ producers’ decision to increase production acceleration last week also put pressure on oil prices. On Sunday, Saudi Aramco cut prices for its flagship Arab light crude oil.

Trump touted a sharp drop in oil prices earlier Monday.

The president said in a social post of truth: “Oil prices fall, interest rates fall (slow movement should lower interest rates!), food prices fall, no inflation, abuse of the long-term abuse of the United States weekly from countries that have already reached tariffs from abuse countries.”

But the concern is that tariffs could lead to higher corporate prices, which could lead to slowing economic activity and ultimately hurt demand for oil.

JPMorgan said tariffs that will come into effect this week will “may push the U.S. and even the global economy into a recession this year.” The company on Thursday This year increases the chances of a recession After the tariffs were introduced, it reached 60%, which was higher than 40%.

Bank of America believes that the trade war has reduced OPEC+’s increase in production this year while increasing oil demand. According to the bank, this will result in a “attractive” surplus of 1.25 million barrels per day.

“If this is the case, we think there is more room for oil prices and oil leverage value,” Bank of America analysts led by Kalei Akamine told clients in a note on Monday.

Goldman Sachs lowered its December 2025 oil price forecast by $4 to $58 on Sunday, with U.S. crude at $62. Investment banks believe prices fell further in 2026, with U.S. crude oil and Brent on average $55 and $58 a barrel.

Falling oil prices could force U.S. shale producers to cut production. Carlyle Energy chief strategy officer Jeff Currie said U.S. crude oil is already below the breakeven price of some shale companies.

Curry told CNBC’s CNBC, “If you drop below 55, you are now below the economics of the Permian.” “Squawk Box” on Monday. The Permian Basin is the most productive oil patch in the U.S., saying U.S. crude oil prices may be below $50 a barrel.

“It’s important that this could take that potential beyond the circumstances,” he said.

Natasha Kaneva, head of global commodity research at JPMorgan Chase, said in a note Friday that it is difficult to predict the overall direction of development, as countries may seek lower tariff rates through negotiations with Trump.

Regarding oil prices, Kaneva said, “the trajectory is undoubtedly one-way.”