Photo: Getty Image
On Monday, 21 April, oil prices suffered a significant drop – Brent and WTI fell by more than 1.5%. The reason was investors’ fears about possible economic obstacles that could be caused by the US customs barriers. This was reported by Reuters.
Brent fell by $1.10, or 1.6%, to $66.86 per barrel.
WTI lost $1.11, or 1.7%, to stand at $63.57 per barrel.
According to experts, after last week’s price increase due to geopolitical risks and sanctions, new market signals caused a correction. In particular, positive developments in the nuclear talks between the US and Iran have eased fears of a possible reduction in Iranian oil supplies.
IG’s market strategist Yep Jun Rong noted that the global trend in the oil market remains downward, and investors are losing confidence in the stability of fuel demand, given the negative impact of the US tariff policy.
In addition, OPEC+ plans to increase production by 411 thousand barrels per day starting in May, which may also put pressure on prices.
Against the backdrop of weak Asian stock markets and a depreciating dollar, the market is expecting a series of US manufacturing and service sector PMI reports that may confirm the trend towards economic slowdown.
A Reuters poll conducted on 17 April showed that investors estimate the probability of a recession in the US in the next 12 months at 50%, which also affects energy demand expectations.
