The oil decline is more than 1%, amid fears of the decline in demand due to the trade war

May 2, 2025

Oil prices fell by more than 1% during early Asian trading today, Wednesday, in light of the unbalanced US President Donald Trump’s policies towards customs duties that raised concerns about global economic growth and fuel demand.

Brent crude futures fell 1.1%, registering $ 63.57 a barrel by 03:00 GMT, Texas crude contracts fell 1.16% to record the lowest level since April 11 at 59.71 dollars, and both records were recorded in the previous session the lowest settlement price since April 10.

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A Reuters poll showed that the customs duties imposed by Trump on imports to America have increased the possibility of the global economy sliding this year, and China, the largest affected China, responded by imposing customs duties on America’s imports, which sparked a trade war between the two largest oil consumers.

The commodity expert in “ANZ Bank” Daniel Heinz said that concerns about demand under the trade war affected the morale of investors, adding also fears that the recent improvement in American economic data was only temporary, given the storage before the imposition of customs duties that now seems to be in the process of recession. “

The confidence of the American consumer decreased to its lowest level in 5 years during April due to the increasing concerns about customs duties, according to data published on Tuesday.

On the offer, US crude oil stocks rose 3.8 million barrels last week, according to market sources on Tuesday, quoting data from the American Petroleum Institute, and government data on stocks is scheduled to be issued at 14:30 GMT today, Wednesday, while analysts expect 400 thousand barrels in stocks last week.

Oil prices were also affected by a possible increase in production from the OPEC+ coalition, which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, especially in light of the pressures of the trade war between America and China on demand, and sources told Reuters last week that many members of OPEC+ will suggest increasing production for the second month in a row in June.