Oil prices continued to decline as broader market concerns deepened, fueled by the ongoing trade dispute between the U.S. and China — the world’s two largest economies.
Brent crude was trading close to $64 per barrel, while West Texas Intermediate (WTI) dropped below $61. Fears over a potential global oil oversupply intensified as China warned on Wednesday that relying solely on domestic consumption would not be enough to drive economic growth, according to Bloomberg.
This downturn comes despite a positive economic report from China, which showed strong growth in production and consumption for the first quarter, particularly in March. However, economists and investors remain cautious, fearing that the momentum may not last as the trade war between the U.S. and China escalates. U.S. President Donald Trump emphasized on Tuesday that it is now up to China to initiate talks with Washington.
Crude oil prices have remained near their lowest levels in four years, after a significant drop earlier this month due to the tariffs and counter-tariffs imposed between the U.S. and its major trading partners. On Tuesday, the U.S. government launched an investigation into the need for import taxes on critical minerals, while White House officials indicated that most of the tariffs imposed on the European Union would not be removed anytime soon.
Additionally, the International Energy Agency (IEA) downgraded its global oil consumption forecast for this year, predicting that supply would exceed demand. The American Petroleum Institute (API) reported a rise of 2.4 million barrels in U.S. crude oil inventories last week, marking the third consecutive weekly increase if confirmed by official data later on Wednesday. However, the API also noted declines at the Cushing, Oklahoma storage hub and in fuel inventories.
As the trade dispute continues to impact oil markets, concerns about future demand and oversupply remain central to market fluctuations.
Related Topics:
Oil Prices Rise Amid US Tariff Exemptions, OPEC Output Cuts, and US-Iran Talks
What Is the Core Process in Refining Crude Oil into Petroleum Products?
