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Oil prices fall as trade war concerns dampen demand outlook
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Oil prices fall as trade war concerns dampen demand outlook
May 25, 2025 10:47 PM

April 30 (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.

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.

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.

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