Oil prices extended losses on Wednesday, heading for their steepest monthly decline in over three years, as escalating trade tensions and rising supply fears darkened the global demand outlook. Brent crude fell 1.12 per cent to $63.53 per barrel, while US West Texas Intermediate (WTI) dropped 1.16 per cent to $59.71. Both benchmarks have tumbled 15–16 per cent in April, their sharpest fall since November 2021. The slump follows the US administration's April 2 move to impose broad tariffs on imports, triggering retaliatory measures from China and intensifying trade war fears between the world's top oil consumers. The conflict has raised recession risks, with China's factory activity contracting at its fastest rate in 16 months and US consumer confidence dropping to a five-year low. Despite recent efforts by Washington to ease tariff pressure, analysts expect oil prices to remain under strain as the US prioritises lower fuel costs to combat inflation. Additional downward pressure came from expectations of increased output from OPEC+ and a surprise 3.8 million-barrel rise in US crude stockpiles last week, according to API data. Attribution: Reuters Subediting: M. S. Salama
