Oil prices tumbled again Wednesday, marking their steepest monthly decline since 2021 as a worsening U.S.-China trade war and supply concerns crushed market confidence.
Brent crude dropped 75 cents to $63.50 per barrel, while West Texas Intermediate fell 79 cents to $59.63.
For the month, Brent and WTI have plunged 15% and 17% respectively, their sharpest monthly losses in over three years.
The market has been in free fall since early April, when U.S. President Donald Trump slapped tariffs on all imports, prompting swift retaliation from China.
Escalating trade tensions between the world’s largest oil consumers have raised fears of a global recession and weaker fuel demand.
China’s factory activity in April shrank at its fastest rate in 16 months, fueling further economic uncertainty.
Investor sentiment also suffered as U.S. consumer confidence dipped to a near five-year low on tariff concerns.
Although Trump’s recent efforts to soften auto tariffs slightly calmed markets, analysts expect oil to remain under pressure.
Rising U.S. crude inventories, up 3.8 million barrels last week, have added to bearish sentiment.
OPEC+ is also weighing a second consecutive monthly output hike, with key decisions expected at its May 5 meeting.
Analysts forecast another stockpile increase of 400,000 barrels in official U.S. government data due later Wednesday.
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