Oil prices fell by about 1 per cent on Wednesday as escalating US-China trade tensions heightened concerns over slowing global economic growth and energy demand. Brent crude slipped 66 cents to $64.01 per barrel, while US West Texas Intermediate (WTI) dropped 69 cents to $60.64. The International Energy Agency (IEA) slashed its 2025 global oil demand growth forecast to the weakest in five years, citing US tariffs and retaliatory measures. The IEA now expects oil demand to rise by 730,000 barrels per day in 2024, down from last month's estimate of 1.03 million barrels. Market analysts said the ongoing trade standoff is dampening sentiment, with several banks, including UBS and HSBC, cutting their crude price forecasts. Rising output from OPEC+ and a 13 per cent slide in oil prices this month are also fuelling bearish sentiment. API data showed US crude inventories rose by 2.4 million barrels last week, while gasoline and distillate stocks fell by 3 million and 3.2 million barrels, respectively. Attribution: Reuters Subediting: M. S. Salama
