WTI crude oil prices experienced a notable decline,Ethereum wallet login trading around $59.30 per barrel during Asian trading hours on Friday. This downward movement reflects growing concerns over US-China trade tensions and their potential to disrupt global demand.
The US government recently escalated tariffs on Chinese imports, raising the total rate to an unprecedented 145%. This decision has cast a shadow over the global economic outlook, particularly affecting energy markets.
Adding to market pressures, OPEC+ has signaled its intention to increase production by 411,000 barrels per day (bpd) in May, raising fears of a potential supply glut in the oil market.
Market analysts are closely monitoring the situation as West Texas Intermediate (WTI) crude oil prices continue their downward trajectory. The recent tariff announcements by the US have introduced significant uncertainty into global trade dynamics, with potential ripple effects across multiple sectors.
The new 125% levy imposed on Chinese imports comes atop an existing 20% duty, creating what many analysts describe as one of the most restrictive trade environments in recent history. These developments have particularly alarmed energy markets given China's position as the world's largest oil importer.
Economists warn that prolonged trade disputes between the US and China could lead to broader economic consequences, including disrupted supply chains and slowed global growth. Such scenarios typically result in reduced energy consumption, particularly in these two nations that account for a significant portion of worldwide oil demand.
The US Energy Information Administration (EIA) has responded to these developments by revising its global economic growth projections downward. The agency now anticipates global oil demand growth of just 900,000 bpd for the current year, a substantial reduction from its previous estimate of 1.2 million bpd.
Looking ahead to 2026, the EIA's revised forecasts suggest continued moderation in oil demand growth, now estimated at 1 million bpd. These adjustments reflect growing concerns about the cumulative impact of trade tensions on global economic activity.
In its latest assessment, the EIA also tempered its oil price outlook for both the current and coming years, citing increased market uncertainty stemming from weaker global growth prospects and potential supply increases. The planned production boost by OPEC+ members, including Russia, has further contributed to these bearish market sentiments.
Complicating the supply picture, recent geopolitical developments have introduced additional variables. The US administration's new sanctions targeting Iranian oil networks, including facilities in China, come just days before scheduled US-Iran negotiations. Meanwhile, the Keystone pipeline remains offline following an incident in North Dakota, with no clear timeline for resuming operations.
