Oil prices fell more than 3 percent on Monday, extending losses from the previous week.

There are growing concerns that a global trade war could further slow the world economy and weaken oil demand.

A breakdown by Reuters states that Brent futures declined by $2.10, or 3.2 percent, to $63.48 a barrel at 10:27 GMT, while U.S. West Texas Intermediate crude futures lost $2.14, or 3.5 percent, to $59.85.

Both benchmarks plunged 7 percent on Friday to settle at their lowest in over three years, as China ramped up tariffs on U.S. goods in retaliation for Donald Trump’s tariffs, according to Reuters.

The move by China could further escalate a trade war that has led investors to price in a higher probability of recession.

DAILY POST reported that China responded swiftly to Trump’s tariffs, announcing it would impose additional levies of 34 percent on American goods.

This confirms investor fears that a full-blown global trade war is under way.

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