Oil prices dropped amid growing concerns that the U.S.– China trade conflict will weaken global economic growth and reduce oil demand. Brent crude fell to $63.87 per barrel (-1.44%), while West Texas Intermediate (WTI) dropped to $61.14 (-1.48%).
The stalled trade talks between the two largest oil-consuming nations have raised fears of a potential global recession. U.S. tariffs on Chinese goods—and China's retaliatory measures—have disrupted market confidence, leading analysts to cut oil demand and price forecasts. Barclays recently lowered its 2025 Brent price projection by $4 to $70, citing trade tensions and rising supply from OPEC+.
U.S. economic data added to the pessimism, with manufacturing activity showing signs of slowing. Analysts note that earlier growth was driven by pre-tariff stockpiling, a trend now fading. Meanwhile, U.S. crude inventories are expected to have risen by 500,000 barrels in the week ended April 15.
On the supply side, OPEC+ members may accelerate output increases, contributing to an expected supply surplus. Additionally, talks between the U.S. and Iran could ease restrictions on Iranian oil exports over time.
In Europe, a massive power outage disrupted oil refinery operations in Spain and Portugal, although power has now been largely restored and refineries are resuming activity.