US tariff policy continues to drive down oil prices, leading to broader economic consequences, APA-Economics reports citing the international rating agency Moody’s.
Concerns over a potential trade war because of the US trade policy could reduce global economic growth and, consequently, demand for oil. Additionally, OPEC-plus has decided to increase oil production, adding supply to the market. As a result, crude prices have fallen significantly in April, with Brent and WTI benchmarks around $65 and $62 per barrel, respectively, as of 16 April.
Crude prices will likely remain low but volatile in 2025. Even if oil demand remains steady, the crude market is well supplied and is likely to experience inventory build-up in the second half of the year if OPEC and OPEC-plus maintain plans to unwind production cuts.
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