Oil Prices Decline Amid US-China Trade War Concerns

Oil prices dropped during early trading in Asia on Tuesday. Investors are worried about demand for oil because of the ongoing trade fight between the United States and China, the two largest economies in the world. Brent crude oil prices fell by 25 cents to $65.61 per barrel. At the same time, U.S. West Texas Intermediate crude dropped by 18 cents to $61.87 per barrel. Both types of oil prices dropped by more than $1 on Monday.

Economists are concerned that the trade war could lead to a global economic slowdown this year. President Trump’s decision to impose tariffs on U.S. imports has caused China to respond with its own tariffs, worsening the trade dispute. As a result, many analysts are reducing their forecasts for oil demand and prices.

Recently, Barclays lowered its expectation for Brent crude oil prices in 2025 by $4 to $70 per barrel because of worries about trade problems and changes in how oil is produced by OPEC+, a group of oil-exporting countries. Some OPEC+ members plan to increase production, which could lead to a bigger surplus of oil on the market and lower prices. Oil analyst Philip Verleger pointed out that if these countries increase production, prices could go down significantly.

On another note, it is estimated that U.S. oil stockpiles might have increased by about 500,000 barrels for the week ending April 15, based on a poll of analysts. The American Petroleum Institute will release its oil inventory estimates on Tuesday, and the Energy Information Administration will provide official numbers on Wednesday.