Oil Prices Dip Amid Tariff Concerns, Rising Inventories, and OPEC+ Output Worries

Oil prices slipped in early Asian trading Wednesday, pressured by renewed concerns over global economic growth and fuel demand due to U.S. tariff policies and rising crude inventories.

Brent crude futures fell 17 cents, or 0.26%, to $64.08 per barrel, while U.S. West Texas Intermediate (WTI) dropped 12 cents, or 0.2%, to $60.30 a barrel by 0015 GMT. Both benchmarks recorded their lowest settlement levels since April 10 in the prior session.

Market sentiment has been hit by fears that President Donald Trump’s unpredictable tariff strategy could trigger a global recession. A Reuters poll highlighted the increasing likelihood of a downturn this year, especially as the U.S.-China trade war escalates. With China retaliating against U.S. tariffs, tensions between the world's top two oil consumers continue to cloud demand forecasts.

ANZ Bank’s senior commodity strategist Daniel Hynes noted that investor confidence is being eroded not only by trade tensions but also by concerns that recent strong U.S. economic indicators were short-lived, driven by pre-tariff stockpiling that is now unwinding.

Adding further pressure, U.S. consumer confidence plunged to its lowest in nearly five years in April. Meanwhile, American Petroleum Institute (API) data showed U.S. crude inventories rose by 3.8 million barrels last week. Official Energy Information Administration (EIA) data, expected Wednesday, forecasts a smaller 400,000-barrel increase.

The supply outlook may also shift, as OPEC+ could raise output for a second consecutive month in June, according to sources. With weakening demand growth and potential production increases, the global oil market faces heightened volatility in the near term.

This mix of demand uncertainty, rising U.S. stockpiles, and OPEC+ policy shifts continues to weigh on oil prices.