Oil Prices Decline On Demand Worries

(RTTNews) - Oil prices declined on Monday amid demand concerns after official data showed a slowdown in the pace of China's industrial output and retail sales.

Ongoing talks to end the war in Ukraine and U.S. debt concerns were also in focus. Benchmark Brent crude futures fell half a percent to $65.10 a barrel in European trading, while WTI crude futures were down 0.6 percent at $61.62.

Demand concerns resurfaced as mixed economic readings from China highlighted a fragile recovery.

Industrial output held up in April but retail sales and investment disappointed as firms and households turn more cautious due to the trade war, official data revealed.

On the geopolitical front, U.S. President Donald Trump is holding crunch talks with Russian President Vladimir Putin today to speed up ceasefire efforts after Western leaders demanded an immediate truce.

This follows the first in-person peace talks between Russia and Ukraine in three years, recently held in Istanbul. Trump says today's call could be a turning point.

Meanwhile, Moody's Ratings stripped the U.S. government of its top credit rating, adding to concerns over the U.S. sovereign bond market and a slowing economy.

Moody's downgraded the U.S. credit rating by one notch to Aa1 from Aaa, citing rising levels of government debt and interest payments.

The rating agency warned it expects federal deficits to widen to almost nine percent of economic output by 2035, up from 6.4 percent last year.

The downgrade deals a blow to President Donald Trump's narrative of economic strength and prosperity.