Crude oil prices plummet due to economic downturn fears and trade war concerns

From Yahoo Finance: 2025-04-30 12:52:00

Crude oil prices are set for their worst monthly drop since 2021 due to fears of a global economic downturn and tariffs impacting demand, coinciding with an upcoming surge in oil supply.

US benchmark WTI crude oil prices dropped over 3.5% to $58.20 a barrel, while Brent crude fell over 3.5% to $60.93 a barrel, marking a 16% and 17% loss this month, respectively.

The US economy contracted in Q1 for the first time in three years, with slower hiring than expected, signaling tariffs impacting economic growth.

China reported factory activity contracting at the fastest rate in over a year, fueling concerns about the US-China trade dispute affecting global oil demand.

OPEC+ is expected to increase oil production in June, adding pressure on prices, while the S&P 500 has seen a recovery, but oil prices have not received the same investor support.

Gas prices have risen in April due to increased demand and better weather, with the average per-gallon cost of regular gas at $3.18, up from $3.16 a month ago.

Read more: Oil prices on track for biggest monthly drop since 2021 as trade war sparks recession, demand fears