WTI drops to near $60.00 as US-China trade dispute continues to weigh on energy demand
WTI declined by over 1% as the prolonged US-China trade conflict continues to weigh on energy demand.
The IEA has adjusted its 2025 global Oil demand forecast, projecting the slowest growth rate in five years.
Heightened trade uncertainty has led several banks, including UBS, BNP Paribas, and HSBC, to lower their crude oil price forecasts.
West Texas Intermediate (WTI) Oil price continues its decline for the third consecutive session, losing over 1.00% and trading near $60.30 per barrel during early European hours on Wednesday. The drop in crude Oil prices reflects growing uncertainty caused by shifts in US tariff policies, as traders assess the economic ramifications of the ongoing US-China trade conflict and its potential impact on energy demand.
On Tuesday, the International Energy Agency (IEA) revised its 2025 global Oil demand forecast, predicting the slowest growth rate in five years. The IEA also noted that US production growth is expected to slow due to tariffs introduced by US President Donald Trump and the retaliatory actions of trade partners. Additionally, the agency warned that the global oversupply of Oil could persist until 2026.
The combination of escalating tariffs and increased output from OPEC+—a coalition of the Organization of the Petroleum Exporting Countries and its allies—has already driven Oil prices down approximately 13% this month. Trade-related uncertainty has prompted several banks, including UBS, BNP Paribas, and HSBC, to revise their crude Oil price projections downward.
Further complicating the outlook, OPEC+ continues to raise production levels, while progress in US-Iran nuclear discussions could lead to increased Iranian oil exports. Meanwhile, President Trump’s investigation into critical mineral tariffs may strain relations with key suppliers such as China, exacerbating concerns about economic growth and its effects on Oil demand.
Meanwhile, the American Petroleum Institute (API) reported an unexpected rise of 2.4 million barrels in last week’s US crude Oil stock, contrasting with the anticipated decrease of 1.68 million barrels and the previous week's decline of 1.057 million barrels.
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