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.