Oil decreases 2% with the impact of demand for commercial war

Oil prices fell by more than 2% on Tuesday to record their lowest level in two weeks amid expectations of an increase in OPEC+production, in light of the impact of American customs duties on economic growth and fuel demand.

Brent crude futures fell by $ 1.61 to $ 64.25 a barrel, while West Texas Intermediate crude futures fell by $ 1.63 to $ 60.42 a barrel, the lowest closure since April 10.

According to a Reuters poll, US President Donald Trump is seeking to amend global trade by imposing high customs duties, which increases the chances of economic recession.

The escalation of trade tension between the United States and China, the largest oil consumers, led to the amendment of oil demand expectations and prices. Bob Yuger from Mezoho commented that the slowdown in trade is like a ban, expecting a negative impact on global demand.

Meanwhile, some OPEC+member states, according to Reuters sources, are seeking to accelerate the increase in production in June. The data reported that Kazakhstan, a member of OPEC+, raised its oil exports by 7% in the first quarter of the year, in light of the increase in supplies through the Caspian Sea pipeline.

Investors are awaiting the announcement of the American Petroleum Institute of its estimates of oil stocks, with the issuance of official numbers from the Energy Information Department tomorrow, which may provide more clarification on the future market trends.