Oil prices hit a six-month low as trade wars, led by U.S. President Donald Trump, weaken demand while OPEC+ signals increased supply.Brent crude fell 2.4% to just above $69, and WTI dropped 2.9% to near $66, marking their lowest levels since early September.
Brent briefly touched its lowest since December 2021 before recovering slightly.Uncertainty over trade policies threatens global energy demand, while rising OPEC+ production and swelling U.S. stockpiles add to surplus concerns.
Crude prices have been declining since mid-January as concerns over Trump’s trade policies fuel fears of multiple trade wars. Oil options traders are the most bearish in five months, with a surge in bearish put contract volumes on Tuesday.EIA Data: Crude inventories rose by 3.61 million barrels, far exceeding the 800,000-barrel estimate.The growing pessimism has led firms to lower price forecasts.
Enverus cut its Brent outlook for the year from $80 to $70 per barrel, while Morgan Stanley reduced its second-quarter 2025 forecast by $5 to $70. Citigroup expects Brent to fall to $60.“The market is adjusting to downside risks, shifting WTI’s floor from $65 to around $60,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “Attention has shifted entirely from supply risks to demand concerns, which may indicate we’re nearing a bottom.”
