Oil Prices Expected to Decline as US-China Trade War Strains Demand

Oil prices are set for a second consecutive weekly loss, driven by escalating trade tensions between the U.S. and China, which have raised concerns about global economic growth and crude demand. West Texas Intermediate (WTI) and Brent crude have both seen significant declines, with WTI dropping over 3% to approximately $60 per barrel and Brent down about 4% this week. President Trump's recent decision to increase tariffs on Chinese goods to 145% has intensified fears of a trade war, prompting China to retaliate with its own tariffs. The U.S. Energy Information Administration has revised down its global oil demand forecasts due to these trade frictions, further dampening market sentiment. Analysts warn that a slowdown in global economic growth could lead to decreased oil consumption, with predictions of a 1% drop if growth falls below 3%. Overall, the combination of tariffs and potential supply increases from OPEC+ is contributing to a bearish outlook for oil prices.