Crude Oil Prices Fall on US-China Trade War Concerns
Oil prices declined for the third consecutive week amid ongoing trade tensions between the United States and China. West Texas Intermediate (WTI) crude and Brent futures both dropped by over 2% after US tariffs on Chinese imports took effect on Tuesday, triggering retaliatory measures from Beijing.
"Crude oil futures edged higher, but the trend remains mostly bearish," said Dubai-based economist Hamza Zraimek. "Trade tensions have raised fears of a global economic slowdown, potentially weakening oil demand."
A planned phone call between President Trump and Chinese leader Xi Jinping was canceled, dampening optimism for a quick agreement. Trump has also announced plans to impose reciprocal tariffs on American imports, further heightening concerns over economic growth and lower demand.
Despite initial gains following the announcement of US sanctions on Iranian oil, the threat of tariffs has outweighed the risk of supply restrictions. WTI erased its year-to-date gains while Brent remains marginally higher since January.