By Firdevs Yuksel
ISTANBUL (AA) - Oil prices declined on Monday as weak inflation data from China, the world's leading crude importer, raised concerns over slowing demand, while uncertainty surrounding US trade tariffs added further pressure.
The international benchmark Brent crude decreased by 0.16%, trading at $70.08 per barrel at 11.15 a.m. local time (0815 GMT), down from $70.19 at the close of the previous session.
The US benchmark West Texas Intermediate fell by 0.19%, settling at $66.72 per barrel, compared to its prior session close of $66.85.
China's latest inflation figures signaled weak domestic demand. The Consumer Price Index (CPI) dropped by 0.7% year-on-year in February, while the Producer Price Index (PPI) declined by 2.2%.
Analysts warned that sluggish domestic demand poses a significant risk to China's economy, potentially dampening the country's appetite for crude oil.
Downward pressure on oil prices continued as US President Donald Trump imposed, then delayed, tariffs on key oil suppliers Canada and Mexico, while also raising taxes on Chinese goods.
These actions are expected to potentially slow economic growth and weaken energy demand, which could exert downward pressure on oil prices.
Meanwhile, the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will proceed with oil output rises from April.
However, Russian Deputy Prime Minister Alexander Novak emphasized that if market imbalances arise, they are ready to adjust their approach accordingly.
Adding to supply concerns, the US continues its "maximum pressure" policy against Iran.
US National Security Advisor Michael Waltz informed Iraqi Prime Minister Mohammed Shia' al-Sudani in a phone call Sunday that Washington has decided to end a crucial sanctions waiver that allowed Iraq to purchase gas and electricity from Iran.
Waltz described the decision as part of Trump's "maximum pressure" strategy aimed at reducing Iraq's dependence on Iranian energy sources, according to the Iraqi Prime Minister's press office.
The US has imposed sanctions on Iran for years, citing concerns about its nuclear program and other factors. The measures have intensified under the Trump administration, with Washington aiming to severely reduce Iran's oil exports and economic output.