Crude Reality: Oil Prices Head for Sharpest Monthly Decline in Over Three Years

Oil prices continued to fall on Wednesday, heading for their sharpest monthly decline since November 2021. The drop is being driven by rising concerns over weaker global demand and increasing oil supply.

By 11:59 GMT, Brent crude had slipped 63 cents (1%) to $63.62 per barrel, while U.S. West Texas Intermediate (WTI) crude was down 42 cents (0.7%) at $60.00. So far in April, Brent is down about 15% and WTI nearly 16% — the largest monthly losses in over three years.

Also Read: Crude Oil Dips Below $57 — First Time Since 2021! What’s Driving The Drop? | Republic World

Trade Tensions Weigh on Demand

The slide began after U.S. President Donald Trump announced broad tariffs on all imports on April 2, sparking a fresh trade conflict with China. Beijing’s retaliatory measures have deepened worries about slowing demand from the world’s two biggest oil consumers.

The economic fallout is already visible. China’s factory activity declined at the fastest pace in 16 months, while U.S. consumer confidence hit a five-year low in April. A Reuters poll now sees a rising risk of a global recession.

Though the U.S. moved to ease auto tariffs this week, the broader demand outlook remains weak.

OPEC+ and Supply Concerns

Traders are also worried about rising oil supply. Several  countries may suggest a second straight month of output increases when the group meets on May 5. A resolution in Ukraine and Iran could also lead to more oil entering the market.

U.S. stockpiles add to the concern. According to the American Petroleum Institute, crude inventories rose by 3.8 million barrels last week — far higher than expected.

While falling prices may ease pressure on consumers, they pose financial challenges for oil-exporting nations. With more economic data expected and OPEC+ talks approaching, markets remain on edge.