04:59 AM EDT, 04/29/2025 (MT Newswires) -- Crude oil prices dropped on Tuesday as the trade war between the U.S. and China prompted investors to lower their outlook on demand growth.

Brent crude lost 0.9% to US$65.30/barrel and West Texas Intermediate crude fell 0.8% to US$61.56/b at last look. U.S. President Donald Trump's tariffs has created a high risk that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.

"Stalling negotiations between China and the U.S. on trade raises anxiety levels on economic and demand growth prospects once again," Reuters quoted PVM analyst Tamas Varga as saying in a Tuesday report.

Major futures contracts lost roughly US$1/barrel, indicating weakening investor confidence in the oil market, exacerbated by refinery shutdowns in the Iberian Peninsula due to a massive power blackout, Varga said, as quoted by Reuters.

Barclays also reduced its 2025 Brent crude price forecast by $4 to $70/b on elevated trade tensions and a pivot in production strategy by the OPEC+ group, Reuters reported.