Falling Oil prices poised for biggest monthly decline since 2021
Oil prices extended declines on Wednesday and were set for their largest monthly drop in almost three and a half years as the global trade war eroded the outlook for fuel demand while concern over mounting supply also weighed.
Brent crude futures were down 77 cents, or 1.2%, at $63.48 a barrel by 1305 GMT. U.S. West Texas Intermediate crude futures dropped 74 cents, also 1.2%, to $59.68.
So far this month Brent and WTI have lost about 15% and 16% respectively for the biggest percentage falls since November 2021.
Both benchmarks slumped after U.S. President Donald Trump’s April 2 announcement of tariffs on all U.S. imports. They then sank further to four-year lows as China responded with its own levies, stoking a trade war between the world’s top two oil-consuming nations.
Data on Wednesday showed the U.S. economy contracted in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs.
Trump’s tariffs have made it probable the global economy will slip into recession this year, a Reuters poll suggested.
China’s factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday.
U.S. consumer confidence, meanwhile, slumped to its lowest in nearly five years in April on growing concerns over tariffs, data showed on Tuesday.
While orders Trump signed on Tuesday to soften the blow of auto tariffs eased some jitters among investors, oil prices were also undermined by concern over mounting supply from OPEC+.
Source: Reuters
