Economic Uncertainty Drives Oil Prices Down

The ongoing trade confrontation between the United States and China, the world's largest oil consumers, has cast a shadow over global economic prospects, leading to a significant drop in oil prices. This development comes as investors grow increasingly concerned about the impact of these tensions on global demand.

US GDP Decline Adds to Economic Worries

Further fueling the downturn, recent data revealed a 0.3% decline in the US GDP for the first quarter of 2025. This downturn, attributed to tariff pressures, has only intensified fears regarding the health of the global economy.

Market Reaction

By midday trading, West Texas Intermediate (WTI) for June deliveries had fallen by 4.04%, trading at $58.02 per barrel. Similarly, Brent crude for the same month experienced a 1.82% drop, settling at $63.08 per barrel.