Oil prices fell to near a two-week low on Tuesday as concerns about lower demand growth due to the ongoing trade war between the United States and China, the world’s two largest economies, weighed on investor sentiment.
Brent crude futures dropped by $1.27, or 1.9%, to $64.59 per barrel by 1303 GMT, while U.S. West Texas Intermediate crude declined by $1.07, or 1.7%, to $60.98 per barrel.
The prolonged trade dispute has raised concerns about its potential impact on global oil demand, especially as tariffs imposed by both nations continue to increase economic uncertainty. The trade war has prompted analysts to lower their oil demand and price forecasts for the near future.
In addition to the trade tensions, several members of OPEC+ are considering accelerating output hikes for a second consecutive month in June, adding to concerns about an oversupplied market. Kazakhstan, one of the key producers, has seen a 7% increase in oil exports during the first quarter of 2025, contributing to a well-supplied global oil market.
As global economic uncertainty continues, oil prices are under pressure as investors adjust their expectations for both demand and supply dynamics in the second half of the year.
