Follwoing the ongoing trade war between the two largest economies in the world, the demand for crude oil has decreased, leading to a drop in its global market price.
Brent prices have dipped below $65 per barrel again as the seemingly inopportune willingness of Saudi Arabia and other OPEC+ countries to unwind even more production into the summer months depresses market sentiment.
Besides, a potential Russia-Ukraine negotiations breakthrough or a rapprochement between the US and Iran loom large for oil markets, with bullish factors remaining scarce.
The price of Brent crude oil fell by 59 cents to $65.27 per barrel, while the price of West Texas Intermediate (WTI) crude dropped by 49 cents to $61.56 per barrel.
Market analysts say the breakdown in negotiations between the United States and China has created concerns in the business sector. As a result, oil demand has declined once again.
Further, number of economists are on the view that by imposing tariffs on all imported goods, Donald Trump has created significant risks for global trade. The global economy may face a downturn this year.
