Oil Prices Take a Hit Amid Economic Uncertainty

The global oil market witnessed a significant downturn on Wednesday, with prices dropping more than 4%. This decline was fueled by growing concerns over the economic fallout from the ongoing trade confrontation between the United States and China, the world's largest oil consumers.

Economic Data Adds to the Gloom

Adding to the market's unease, recent data revealed a 0.3% contraction in the US GDP during the first quarter of 2025, further stoking fears about the health of the global economy.

Market Reactions

By midday ET, West Texas Intermediate (WTI) for June deliveries had fallen 4.04% to $58.02 per barrel, while Brent crude for the same month's settlements dropped 1.82% to $63.08 per barrel.