Crude Oil Prices Decline Amid Trade War Concerns

In early Asian trading on Tuesday, crude oil prices experienced a downturn as investors adjusted their expectations for demand growth. This adjustment is largely attributed to the continuing trade tensions between the United States and China, the world’s two leading economies.

Brent crude futures saw a decrease of 25 cents, or 0.4%, settling at $65.61 per barrel by 0024 GMT. Similarly, U.S. West Texas Intermediate crude futures declined by 18 cents, or 0.3%, reaching $61.87 a barrel.

Both benchmarks had already fallen by more than $1 during the previous day’s trading.

The trade policies of U.S. President Donald Trump, characterized by the imposition of tariffs on imports into the U.S., have heightened the risk of a global economic recession this year, according to a survey of economists.

China, facing the most substantial tariffs, has retaliated with its own tariffs on U.S. imports, intensifying the trade conflict between the two major oil-consuming nations.

This situation has led analysts to significantly lower their projections for oil demand and prices.

Barclays, on Monday, revised its 2025 forecast for Brent crude, reducing it by $4 to $70 a barrel. They cited persistent trade tensions and a shift in production strategy by the OPEC+ group as factors contributing to an expected oil supply surplus of 1 million barrels per day this year.

Sources indicated that several members of OPEC+, which includes the Organization of the Petroleum Exporting Countries and its allies, may propose accelerating output increases for the second successive month in June.

An oil analyst, Philip Verleger, noted that a considerable price reduction could occur if exporting nations increase their production.

A preliminary survey of analysts indicated that U.S. crude oil inventories likely increased by approximately 500,000 barrels in the week ending April 15.

The American Petroleum Institute is scheduled to release its estimates on U.S. oil inventories, followed by official data from the Energy Information Administration on Wednesday.