Oil prices extend losses on fears global trade war could slow economy

TOKYO (Reuters) - Oil prices fell more than 3% on Monday, extending losses from the previous week, on growing concerns that a global trade war could slow the global economy and weaken oil demand, following China's retaliation against U.S. President Donald Trump's tariffs.

Brent futures declined $2.1, or 3.2%, to $63.48 a barrel at 2227 GMT, while U.S. West Texas Intermediate crude futures lost $2.14, or 3.5%, to $59.85.

Both benchmarks plunged 7% on Friday to settle at their lowest in over three years as China ramped up tariffs on U.S. goods, escalating a trade war that has led investors to price in a higher probability of recession.

Responding to Trump's tariffs, China on Friday said it would impose additional levies of 34% on American goods, confirming investor fears that a full-blown global trade war is under way and that the global economy may be at risk of a recession.

Investment bank JPMorgan said it now sees a 60% chance of a global economic recession by year-end, up from 40% previously.

(This story has been corrected to fix the time from 1027 GMT to 2227 GMT in paragraph 2)

(Reporting by Yuka Obayashi; Editing by Nick Zieminski)