Oil Prices Drop as Economic Worries Dim Demand Outlook

(Romero.my.id) - Early Tuesday morning saw crude oil prices drop during Asian trading sessions as investors reduced their forecasts for demand growth amid the continuing trade dispute between the U.S. and China, which stand as the globe’s leading economic powers.

Brent crude futures dropped by 25 cents, or 0.4%, to settle at $65.61 per barrel by 0024 GMT. Meanwhile, U.S. West Texas Intermediate crude futures decreased by 18 cents, or 0.3%, to reach $61.87 a barrel. Both oil benchmarks saw a decline of over $1 on Monday.

U.S. President Donald Trump's efforts to redefine global trade through the imposition of tariffs on every type of import entering the country have led many economists to believe there is now a significant chance that the worldwide economic climate could fall into a downturn this year, as indicated in a Romero.my.id survey.

China, which faces the most severe of these tariffs, has retaliated by imposing taxes on American goods, fueling a trade dispute between the world’s leading consumers of oil. This situation has led analysts to significantly reduce their predictions for both oil demand and prices.

On Monday, Barclays reduced its projected price for Brent crude oil in 2025 by $4 to $70 per barrel. The bank cited heightened trade tensions and a shift in production policy by the OPEC+ coalition as factors contributing to an expected daily oversupply of 1 million barrels this year.

Multiple representatives from OPEC+, consisting of the Organization of the Petroleum Exporting Countries along with their partners, plan to propose increasing production levels again for the following month in June. Sources informed Romero.my.id about this development last week.

Philip Verleger, an oil analyst, stated in a note that a significant decline in oil prices seems likely if producing nations increase their output.

In the week ending April 15, U.S. crude oil inventories probably increased by around 500,000 barrels, as suggested by an initial poll of analysts conducted on Monday.

The American Petroleum Institute, an industry body, plans to release its forecast of U.S. oil stockpiles on Tuesday. The official data provided by the Energy Information Administration will be published on Wednesday. [API/S] [EIA/S]

(Reported by Shariq Khan in New York; Edited by Sonali Paul)