Oil Prices Slide Amid Rising U.S.-China Trade Tensions
Oil prices fell on Thursday as President Donald Trump intensified the trade war with China, despite offering a temporary reprieve for other countries. This unexpected move shook investor confidence and reignited concerns about global economic growth, putting fresh pressure on the energy market.
Brent crude futures dropped by 77 cents, or 1.18%, to $64.71 per barrel by 03:20 GMT. Meanwhile, West Texas Intermediate (WTI) crude declined 65 cents, or 1.04%, to $61.70.
These losses followed a volatile session on Wednesday, where oil prices had rebounded nearly 4% after an earlier drop of 7%, driven by hopes of easing trade tensions. However, Trump’s decision to hike tariffs on Chinese goods from 104% to 125% shattered those hopes.
While most nations benefit from a 90-day pause in new tariffs, China now faces immediate and steeper duties. In response, Beijing hit back with an 84% import tariff on U.S. goods, further inflaming the dispute.
According to ING commodities strategists, the uncertain trade outlook could continue to weigh on global demand for oil. “This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand,” the firm stated in a research note.
The Brent crude futures curve also reflects market concerns. From January 2026 onwards, the curve has shifted into contango, indicating expectations of a more well-supplied oil market going forward.
