NEW YORK: Oil prices tumbled nearly 3% on Tuesday, reaching a two-week low, as concerns over weakening global demand and potential OPEC+ supply increases unsettled investors.
Brent crude futures dropped by $1.70, or 2.6%, to $64.16 per barrel, while US West Texas Intermediate (WTI) crude slipped $1.55, or 2.5%, to $60.50. Both benchmarks were set for their lowest closing levels since April 10.
Market sentiment was rattled by escalating US-China trade tensions, with analysts fearing that President Donald Trump’s aggressive tariff policies could trigger a global recession. A Reuters poll of economists echoed these concerns, forecasting a slowdown in global economic activity.
China, the second-largest oil consumer after the US, has retaliated with its own tariffs, intensifying the trade standoff and further clouding the demand outlook for crude.
“Trade between China and the US has slowed to a semi-embargo type flow,” said Bob Yawger, Director of Energy Futures at Mizuho. “Every day without a trade deal brings us closer to global demand destruction.”
Meanwhile, the US goods trade deficit hit a record high in March as importers rushed shipments ahead of additional tariffs, indicating a potential drag on first-quarter economic growth.
