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Oil prices declined slightly on Wednesday amid an escalating trade war between the US and China, which is raising concerns about global economic growth and, as a result, falling demand for energy, Reuters reports.
Brent fell by 0.3% to $64.49 per barrel, while US WTI lost 16 cents to $61.17. Both benchmarks have been declining for the second day in a row.
The International Energy Agency (IEA) estimates that global oil demand growth in 2025 will be the lowest in five years, at just 730,000 barrels per day, compared to 1.03 million bpd previously forecast. This is due to the Trump administration’s new duties against trading partners and their countermeasures.
“Investors cannot find drivers for recovery. An overall economic slowdown is expected due to the US tariffs, which threatens oil demand,” said analyst Yeap Jun Rong of IG.
The market is also under increasing pressure due to the increase in oil production by OPEC+ countries (including Russia), as well as data on the growth of oil reserves in the US – by 2.4 million barrels last week.
The fall in the price of black gold has already exceeded 13% since the beginning of the month. At the same time, several leading banks, including UBS, BNP Paribas and HSBC, have lowered their forecasts for the oil price amid threats of a global recession.
“If the stock market finds support, we may see WTI recover to $65. Without this, prices will remain at $60-62,” commented Tetsu Emori, CEO of Emori Fund Management.
Additional pressure on the market is exerted by China’s decision to stop accepting new Boeing aircraft in response to the 145% US tariffs on Chinese goods. This further increases the degree of tension in the world’s biggest economic dispute.
