Oil prices continued to fall on Wednesday, poised for their steepest monthly decline in nearly three and a half years, as global demand concerns deepened amid ongoing trade tensions and rising supply levels.
Brent crude dropped 77 cents, or 1.2%, to $63.48 a barrel by 1305 GMT, while U.S. West Texas Intermediate (WTI) fell 74 cents, also 1.2%, to $59.68. For the month, Brent and WTI are down approximately 15% and 16% respectively, marking the largest percentage drops since November 2021.
The decline began after U.S. President Donald Trump announced tariffs on all U.S. imports on April 2, escalating a trade war with China, which responded with its own levies. The standoff between the world’s two largest oil consumers has dampened the global demand outlook and pushed oil benchmarks to four-year lows.
Economic data released on Wednesday revealed the U.S. economy contracted in the first quarter, partly due to a surge in goods imports by companies trying to avoid higher tariffs. Meanwhile, China’s factory activity shrank at its fastest pace in 16 months in April, further raising concerns about weakening global demand.
U.S. consumer confidence also declined sharply in April, reaching its lowest level in nearly five years, according to data released Tuesday, as fears over tariffs grew.
While Trump signed orders on Tuesday aimed at easing the impact of auto tariffs, concerns about oversupply persisted. OPEC+ members are expected to propose additional output increases for a second consecutive month during their upcoming meeting on May 5, according to sources.
In the United States, crude inventories rose by 3.8 million barrels last week, according to figures from the American Petroleum Institute. Official U.S. government data is scheduled for release at 1430 GMT. A Reuters poll indicated that analysts expect crude oil stocks to show a more modest increase of 400,000 barrels.
