Oil extended losses amid deepening trade tensions and bearish demand expectations
The move triggered swift retaliation from China, which raised tariffs by 10–15% on select US agricultural and food products. This triggered fears over potentially slower global economic activity and curbed energy demand.
Oil prices declined for a third consecutive session on Tuesday, 4 March 2025, dragging international benchmarks to new multi-month lows. Sentiment remained fragile as escalating trade frictions and subdued demand forecasts weighed on the market.
Brent crude futures settled 58 cents lower at $71.04 per barrel, marking the weakest level since September 2024.
WTI crude dipped 11 cents to close at $68.26 per barrel, returning to levels last seen in November 2024.
The energy sector traded cautiously as the US imposed sweeping tariffs on China, Canada, and Mexico, applying duty rates of 10%, 25%, and 25%, respectively. The move triggered swift retaliation from China, which raised tariffs by 10–15% on select US agricultural and food products. This triggered fears over potentially slower global economic activity and curbed energy demand.
Further pressuring sentiment, Goldman Sachs projected a gradual decline in oil prices through 2026, citing the impact of trade tensions, OPEC+’s planned output increases, and muted US economic data. The bank estimated Brent could plunge to $65/ton or lower by the end of the cited year.
Written by: Derek Yong