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2w ago

Oil Prices Hit Two-Week Lows as Trade Tensions and Oversupply Weigh on Markets

Brent crude falls to $64 per barrel and WTI to $60, marking the steepest monthly decline in three years as U.S.-China trade war and OPEC+ supply increases fuel market uncertainty.

An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023/File Photo
U.S. President Donald Trump reacts next to coal industry workers, on the day he signs energy-related executive orders at the White House in Washington, D.C., U.S., April 8, 2025. REUTERS/Nathan Howard/File Photo
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Overview

  • Brent crude futures dropped to $64.08 per barrel, and WTI fell to $60.30, hitting two-week lows and extending monthly losses to 15-16%, the sharpest drop since November 2021.
  • The U.S.-China trade war, driven by escalating tariffs and retaliatory measures, has dampened global economic growth forecasts and reduced oil demand expectations.
  • Chinese factory activity contracted in April, with the PMI falling to 49, signaling economic strain and further pressuring oil markets.
  • U.S. crude inventories increased by 3.8 million barrels last week, according to the American Petroleum Institute, exacerbating concerns of oversupply.
  • OPEC+ members are reportedly considering additional output hikes in June, intensifying fears of a prolonged supply-demand imbalance.