Brent crude oil traded below $65 a barrel following consecutive weekly losses, while West Texas Intermediate hovered around $62. President Donald Trump temporarily paused import duties on some electronics, but hinted that a specific tariff would be introduced in the future, according to Bloomberg.
Meanwhile, easing tensions with Iran could improve supply prospects. Talks held over the weekend in Oman marked the first high-level engagement since 2022, signaling a renewed effort to resolve the long-standing standoff over Tehran’s nuclear program. Both sides agreed to meet again.
In April, crude oil prices have dropped significantly, primarily due to fears that the ongoing trade war, particularly the dispute between the US and China, could lead to a global recession and reduced energy demand. Additionally, a surprise decision by OPEC+ to bring back previously shuttered output faster than expected has added to the bearish sentiment.
These market movements have reignited concerns that global oil supply will exceed demand this year. Traders are awaiting OPEC’s monthly outlook, expected later today, for more insights into underlying market conditions. The International Energy Agency will also provide its assessment on Tuesday, including its first outlook for 2026.
The steep losses in oil prices this month are part of a broader global market reaction to the escalating trade war, with many commodities and equities seeing declines. Unusual drops in the US dollar and Treasuries, typically seen as safe-haven assets during times of economic stress, have also been noted.
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