(Reuters) – Oil prices edged lower in early Asian trading on Wednesday as President Donald Trump’s erratic tariff policies raised concerns about weakening global economic growth and fuel demand.
Brent crude futures fell by 17 cents, or 0.26%, to $64.08 per barrel by 0015 GMT. U.S. West Texas Intermediate crude futures dropped 12 cents, or 0.2%, to $60.3 a barrel. Both benchmarks posted their lowest settlement prices since April 10 in the previous session.
Trump’s tariffs on imports into the U.S. have made it probable the global economy will slip into recession this year, according to a Reuters poll.
China, hit with the steepest tariffs, has responded with its own levies against U.S. imports, stoking a trade war between the top two oil-consuming nations.
Worries about demand amid the trade war has weighed on investor sentiment, said ANZ bank senior commodity strategist Daniel Hynes. “There are also concerns that recent strength in U.S. economic data was only temporary, due to stockpiling ahead of the tariffs that now appears to be abating,” he added.
U.S. consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs, data showed on Tuesday.
On the supply front, U.S. crude oil inventories rose by 3.8 million barrels last week, market sources said on Tuesday citing American Petroleum Institute data. [API/S]
U.S. government data on stockpiles is due at 10:30 a.m. ET (1430 GMT) on Wednesday. Analysts polled by Reuters expect, on average, an 400,000 barrel increase in U.S. crude oil stocks for last week. [EIA/S]
Oil prices were also undermined by a possible production boost from the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, particularly as the U.S.-China trade war pressures demand.
Several members OPEC+ members will suggest a ramp up of output hikes for a second straight month in June, sources told Reuters last week.
(Reporting by Nicole Jao in New York; Editing by Shri Navaratnam)
