Oil prices dropped roughly 2% on Tuesday, hitting their lowest levels since April 10, as mounting concerns about global economic growth and oversupply weighed on markets. Brent crude futures settled at $64.25 per barrel, down $1.61, or 2.4%, while U.S. West Texas Intermediate (WTI) crude ended at $60.42 per barrel, down $1.63, or 2.6%.
Investors grew increasingly cautious ahead of a potential decision by OPEC+ to accelerate production increases at its June meeting. Reports suggest that several member nations favor a second consecutive month of output hikes. Kazakhstan, a key OPEC+ partner, has already increased exports by 7% in Q1 year-over-year, raising doubts about unity within the group.
Trade tensions between the U.S. and China deepened. Economists now see a global recession as increasingly likely due to President Donald Trump’s aggressive tariffs. China has responded with counter-tariffs, significantly reducing trade volumes between the world’s two largest oil consumers. Bob Yawger of Mizuho warned that without trade deals, markets risk entering a “global demand destruction situation.”
Corporate reactions to the trade war highlighted the economic strain. BP reported a 48% drop in quarterly profits due to weaker refining and gas trading.
Analysts forecasted a modest build of 500,000 barrels of crude for the week ending April 25. If confirmed, this would mark the fifth consecutive weekly increase, though far below the same week’s 7.3 million-barrel build last year and the five-year seasonal average of 3.2 million barrels.