WTI crude price falls below $60 as tariff-driven demand fears mount ahead of OPEC+ meeting
WTI crude slips below $60 per barrel as demand fears and inventory build weigh on sentiment
Crude oil prices extended losses on Wednesday, with West Texas Intermediate (WTI) futures sliding to $59.37 per barrel in early European trading. The decline marks the third straight session of losses for WTI and places it on track for a monthly drop of over 16%—its steepest decline since November 2021.
Brent crude followed suit, trading around $62.49. The sharp pullback is driven by escalating concerns over weakening global demand and an increasingly uncertain trade environment. Erratic tariff policies from the United States under President Trump have fueled a deepening trade war with China, the world’s second-largest oil consumer. These developments are not only casting doubt over the global growth trajectory but also impacting investor sentiment and consumption forecasts across key markets.
Adding to bearish pressure, U.S. consumer confidence tumbled to its lowest level since April 2020. The Conference Board’s Consumer Confidence Index dropped to 86.0 in April, down from 93.9 in March, as inflation worries and trade tensions cloud the economic outlook. At the same time, U.S. crude inventories surged by 3.8 million barrels last week, according to API data—far exceeding analysts’ expectations of a modest 400,000-barrel build.
USOIL price forecast (March 2025 - April 2025) Source: TradingView.
Focus turns to OPEC+ amid supply-demand imbalance
With demand outlooks deteriorating and supply remaining robust, attention is now shifting to the May 5 OPEC+ meeting. Several member nations are reportedly pushing to accelerate the group’s planned production hikes, a move that could add further downside risk to already fragile prices.
As previously discussed, WTI had shown signs of consolidation near $63 earlier this week but failed to hold critical support levels amid rising supply pressure and renewed fears of a demand slowdown. The break below $60 reflects mounting bearish momentum, and traders will be watching closely for cues from the upcoming OPEC+ meeting and further macro data.
