Oil Slides as Trade War Crushes Demand Outlook

​Oil prices are tumbling again—and this time, it’s not just supply concerns dragging them down​.

Crude is getting slammed as the global trade war, fueled by escalating Trump tariffs, starts showing real economic damage. Brent crude dropped below $65 a barrel, on track for its biggest monthly loss since 2021, while West Texas Intermediate (WTI) hovered near $61.

U.S. manufacturing data came in weak, signaling that the ripple effects of tariffs are slamming demand faster than expected. Analysts say pre-tariff stockpiling is fading, and real consumption is cooling, setting the stage for a sharp U.S. growth slowdown.

Meanwhile, OPEC+ plans to revive production later this year, creating a potential supply glut just as global demand weakens. It’s a classic bad mix for prices—and traders are reacting fast.

On the geopolitical side, markets are watching U.S.-Iran talks closely. If sanctions on Iranian oil exports loosen, even more crude could flood into an already fragile market.

Adding to the chaos: Spain and Portugal have restored power after a blackout halted several oil refineries, further easing any near-term supply disruptions.

Bottom line:
​With trade tensions mounting, economic growth slowing, and supply pressures building, oil’s bullish momentum has collapsed. Unless demand stabilizes—or Trump backs off on tariffs—expect more pain ahead for crude.