Brent crude tumbles over 14% in April as US-China trade tensions and rising oil inventories darken global demand outlook.
April 30, 2025: New Delhi: Oil Heads for Historic April Slump as Trade War Hits Demand, Inventories Rise
Oil prices are on track for their worst April performance in history, driven by fears that escalating trade tensions and weakening economic indicators are stalling global energy demand.
Brent crude, the global benchmark, has plummeted over 14% this month, slipping toward $64 a barrel, marking the steepest April decline since the contract’s inception in 1988. Meanwhile, West Texas Intermediate (WTI) traded near $60 per barrel. The slump follows a sharp drop in US consumer confidence, now at a near five-year low, and growing concerns over a broader economic slowdown.
The pressure intensified after the American Petroleum Institute (API) reported a 3.8 million-barrel rise in US commercial crude stockpiles last week, including gains at the vital Cushing, Oklahoma storage hub. Official government inventory data due later Wednesday is expected to confirm the trend.
April has seen crude prices hammered by President Donald Trump’s aggressive tariff policies, particularly targeting China, the world’s largest oil importer. The impact has led to declining forecasts for fuel consumption and raised fears of a global economic drag.
Adding to the bearish sentiment, OPEC has begun loosening its output curbs, with JPMorgan Chase & Co. cautioning that the cartel may accelerate supply hikes at its upcoming meeting.
In another sign of a supply glut, Russia’s oil exports rose for a second consecutive week. Average crude flows from Russian ports climbed to 3.26 million barrels per day in the four weeks to April 27, marking a 1% increase from the previous week. Notably, nearly half the tankers previously sanctioned have resumed transporting Russian oil.
With geopolitical pressures mounting and stockpiles swelling, market watchers warn of further volatility unless a diplomatic breakthrough or production cut restores balance to the energy market.
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