Oil prices edged down on Monday as disappointing Chinese economic data and uncertainty surrounding United States-Iran nuclear negotiations raised concerns over global oil demand.
By 3:20 pm AEST (5:20 am GMT), Brent crude futures slipped by $0.31, or 0.5%, to $65.10 per barrel. U.S. West Texas Intermediate (WTI) crude for July delivery also declined by $0.31, or 0.5%, to $61.66 per barrel.
Both benchmarks posted gains of over 1% last week after the U.S. and China - two of the world's largest oil consumers - agreed to a 90-day truce in their trade dispute, during which both sides would significantly reduce tariffs.
However, investor optimism was tempered by weaker-than-expected Chinese retail sales, which rose just 5.1% in April from a year earlier, falling short of the 5.5% forecast.
Industrial production, by contrast, slightly exceeded expectations with a 6.1% year-on-year increase, compared to projections of a 5.5% gain.
Geopolitical tensions added another layer of uncertainty. Talks between the U.S. and Iran continued to hang in the balance, with U.S. special envoy Steve Witkoff stating Sunday that any potential agreement must prohibit Iran from enriching uranium. Tehran quickly criticised the demand, raising doubts about progress.
