Oil prices fall again on economic uncertainty and US-China trade war

Global oil markets continue to react to the deterioration in economic sentiment caused by the prolonged trade war between the world's two largest economies, the US and China. Investors are revising their forecasts for energy demand, which is weighing on oil prices.

As of the morning of April 29, Brent crude futures fell by 0.8%, reaching $ 65.35 per barrel. American West Texas Intermediate (WTI) crude fell by the same 0.8% and costs $ 61.55 per barrel. In both cases, this is a continuation of Monday's trend, when prices lost more than a dollar.

Analysts warn that the main factor remains trade tensions between the US and China. Priyanka Sachdeva, senior market analyst at Phillip Nova, said the worsening trade war between the two countries could have a domino effect on the global economy. “Markets are closely watching the talks, aware that further escalation could lead to a global recession. Uncertainty about demand and the lack of signs of recovery in China will keep oil prices under pressure,” she said.

The problem is compounded by the aggressive trade policies of the Donald Trump administration, which threatens to impose new tariffs on imports. Most economists surveyed by Reuters believe that such steps significantly increase the risk of a global recession this year.

Lower oil prices are traditionally bad news for exporting countries, but for consumers it could mean a potential reduction in fuel and energy prices. At the same time, the economic consequences of the trade war go far beyond the energy sector - instability affects all areas of global trade.

Against this backdrop, investors are seeking safer assets and countries are beginning to review their economic strategies. The fall in oil prices is just one symptom of broader economic uncertainty that could drag on for a long time unless the US and China find ways to compromise.