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Brent and WTI down for a third session, lowest in over two

weeks

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Both down over 15% so far in April

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China PMI falls sharply as Trump tariffs bite

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OPEC+ meeting on May 5, market fears another output hike

(Changes dateline to London, updates prices, adds analyst

comment)

By Shadia Nasralla

LONDON, April 30 (Reuters) - Oil prices extended

declines on Wednesday and were set for their largest monthly

drop in almost three and a half years as the global trade war

eroded the outlook for fuel demand, while concerns over mounting

supply also weighed.

Brent crude futures fell $1.13, or 1.8%, to $63.12

per barrel by 0813 GMT. U.S. West Texas Intermediate crude

futures dropped $1.11, or 1.8%, to $59.31 a barrel.

So far this month, Brent and WTI have lost 15.4% and 17%,

respectively, the biggest percentage drops since November 2021.

Both benchmarks slumped after U.S. President Donald Trump's

April 2 announcement of tariffs on all U.S. imports. They then

sank further to four-year lows as China responded with levies,

stoking a trade war between the top two oil-consuming nations.

Trump's tariffs have made it probable the global economy

will slip into recession this year, according to a Reuters poll.

China's factory activity contracted at the fastest pace in

16 months in April, a factory survey showed on Wednesday.

U.S. consumer confidence slumped to a nearly five-year low

in April on growing concerns over tariffs, data showed on

Tuesday.

While orders Trump signed on Tuesday to soften the blow of

auto tariffs eased some jitters among investors, oil prices were

also undermined by concerns over mounting supply from OPEC+.

Several OPEC+ members will suggest a ramp-up of output hikes

for a second straight month in June, sources told Reuters last

week. The group will meet on May 5 to discuss output plans.

"The very real possibility that OPEC+ will continue to bring

extra barrels to the market as it fights to keep order within

its ranks is added to the diplomatic thrusts in Ukraine and Iran

which if successful means more international crude on the water

at a time when a trade war will squash any hope of demand

growth," said PVM analysts.

Also sending bearish signals on the supply side, 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 is due at 10:30 a.m. ET (1430 GMT).

Analysts polled by Reuters expect, on average, a 400,000 barrel

increase in U.S. crude oil stocks.

(Additional reporting by Siyi Liu in Singapore

Editing by Peter Graff)