Oil prices fell amid the impact of commercial tensions on demand expectations

Crude oil prices fell in early Asian trading today, Tuesday, amid the decline in investor expectations for the growth of demand due to the ongoing trade war between America and China, the two largest economies in the world.

Brent crude futures fell 0.4% to $ 65.61 a barrel by 03:00 GMT, and Texas crude futures decreased 0.3%, registering $ 61.87 a barrel, and both records fell by more than one dollar yesterday Monday.

Most economists in a Reuters poll said that America’s efforts to reshape global trade by imposing customs duties on all imports increased the risk of the global economy sliding into a stagnation this year, so that China, which received the most severe fees, responds to the imposition of customs duties on America’s imports, to ignite a trade war between the two largest countries in the world, the consumption of crude, which prompted analysts to reduce their expectations to demand oil and its prices sharply.

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“Barclays” reduced his expectations for Brent price of 2025 by $ 4 to $ 70 a barrel, pointing to the escalation of commercial tensions and the production strategy of the “OPEC+” group as major factors behind a surplus in the oil supply of one million barrels per day this year.

Sources for Reuters reported last week that many members of the “OPEC+”, which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, will propose to accelerate the increase in production for the second month in a row in June, and oil market analyst Philip Verlier said in a memorandum “a significant decrease in oil prices if the exporting countries strengthened their production.”

Meanwhile, US crude oil stocks are likely to have risen 500,000 barrels in the week ending April 15, according to the Reuters poll of analysts on Monday, and the American Petroleum Institute is scheduled to deploy its estimates of oil stockpiles later today, Tuesday, with the official figures from the Energy Information Administration tomorrow, Wednesday.