Oil prices further drop in global market amid low demand

Oil prices continued to decline on Wednesday, as uncertainty stemming from shifting U.S. tariff policies prompted traders to assess the potential impact of the ongoing U.S.-China trade tensions on global economic growth and energy demand.

Brent crude futures slipped by 18 cents, or 0.3%, to $64.49 per barrel by 0315 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 16 cents, also 0.3%, to $61.17. Both benchmarks had already lost 0.3% on Tuesday.

According to the International Energy Agency (IEA), global oil demand in 2025 is expected to grow at its slowest pace in five years. Meanwhile, U.S. oil production is also projected to slow, largely due to President Donald Trump’s tariff measures and the resulting retaliatory actions by trade partners.

“Investors are still searching for a clear catalyst to spark a stronger rebound, as widespread expectations of slowing global growth—driven by U.S. tariffs—continue to put downward pressure on oil demand,” said Yeap Jun Rong, a market strategist at IG.

“The downtrend in oil prices persists, and any initial optimism over potential tariff rollbacks may soon fade. Macroeconomic headwinds, reflected in upcoming economic data, could return markets to a more sobering outlook,” Yeap added.

The IEA also noted that global oil demand for this year is now expected to increase by just 730,000 barrels per day—significantly lower than the previous estimate of 1.03 million bpd issued last month. This revision exceeds the cut announced Monday by the Organization of the Petroleum Exporting Countries (OPEC).