Brent crude oil futures fell below $64 a barrel on Tuesday, hitting their lowest level since April 2021 and marking a fourth straight day of losses, as fears of a deepening U.S.-China trade war rattled markets and weighed on global demand expectations.
Oil falls for the fourth straight session
President Trump has threatened an additional 50% tariff on Chinese imports, on top of existing duties, while Beijing vowed to “fight to the end.” Chinese buyers are expected to halt U.S. crude purchases and shift toward alternative supplies from Russia, the Middle East, and Africa, a move that could reshape global energy trade flows.
Meanwhile, the EU is considering a full range of retaliatory measures against U.S. tariffs, further clouding the global trade and energy outlook. Rising geopolitical tensions have added to market uncertainty, with energy investors increasingly concerned about the broader implications for global growth and fuel consumption. The prospect of multiple tariff escalations across major economies has raised the risk of a synchronized slowdown, dampening crude demand forecasts for the rest of the year.
OPEC+ surprised markets with new output increase
Adding to bearish sentiment, OPEC+ surprised markets by announcing a larger-than-expected output increase in an effort to stabilize member economies and recapture lost market share. The decision has weakened hopes for a near-term supply-demand rebalance, especially as global inventories remain elevated and refinery margins come under pressure. Analysts now warn that without a resolution to trade disputes and signs of stronger demand, crude prices may face further downside in the coming weeks.
