Oil prices extended their decline on Wednesday and were set for their biggest monthly drop in more than three years as a global trade war eroded the outlook for fuel demand, while rising supply concerns weighed.
Brent crude futures fell 72 cents (1.12%) to $63.53 a barrel, while West Texas Intermediate (WTI) crude fell 70 cents (1.16%) to $59.71 a barrel.
Brent and WTI have lost 15% and 16% respectively so far this month, their biggest percentage declines since November 2021.
Both benchmarks fell after US President Donald Trump on April 2 announced tariffs on all US imports.
They also fell to their lowest levels in four years when China retaliated with its own tariffs on US imports.
Trump's tariffs on US imports have raised the possibility that the global economy could slip into recession this year.
Demand concerns amid the trade war have weighed on investor sentiment.
Daniel Hynes, senior commodity strategist at ANZ bank, said there were concerns that the recent strength in US economic data was temporary, as savings ahead of tariffs now appeared to be waning.
US consumer confidence fell to a near five-year low in April on growing concerns over tariffs, data showed on Tuesday.
Analysts also believe the oil market will remain under pressure as the Trump administration continues to prioritize and lower oil prices to control inflation.
