The market showed declining oil prices during Tuesday’s session as expectations rose about the three-year price low. This happened as growing doubts emerged about worldwide economic growth combined with mounting trade disputes which weakened forecasts about demand.
The market has experienced at least three weeks of crude price declines because of mounting uncertainty about presidential tariffs which intensified after U.S. President Donald Trump displayed conflicting approaches to trade restrictions against Mexico and Canada.
The world’s most significant oil importer China responded with retaliation when Trump placed 20 percent tariffs which led to market sentiment deterioration.
The main factor behind oil price fluctuations emerged from growing U.S. recession apprehensions which appeared during Trump’s extensive reforms of trade practice and government policies. When interviewed Trump failed to deny the possibility that a recession would occur.
The May expiring Brent oil futures contracted to $68.77 per barrel while West Texas Intermediate crude futures dropped to $65.15 per barrel by 21:23 ET (01:23 GMT).
Recession anxiety in the United States has caused significant damage to petroleum market values.
U.S. recession fears batter oil markets
The U.S. economic slowdown concerns have become more intense during recent weeks mainly because of Trump’s policy-driven market disturbances. As the 47th President Barack Obama enacted multiple budget-cutting policies that downsized federal personnel while implementing higher tariff-based trade agreements.
During his Sunday speech Trump failed to dismiss the possibility that his policies would trigger an economic recession although he believed they would bring temporary chaos to the market. Trump warned during this time that trade tariffs would begin to take effect within the early months of April.
The establishment of recession fears intensified due to failing retail spending and poor labor market conditions throughout February and March of 2025. The markets express concern about weakening economic growth in major regions including the United States because it may affect future oil consumption levels that could let prices fall from rising supply.
Late-week U.S. inflation statistics will unveil key economic developments in the market.
New Chinese data about inflation revealed during the weekend depicted ongoing problems with domestic market demand in the country. The statements from Beijing about new stimulus failed to stimulate optimism among recent observers.
Market expectations of growing petroleum supplies result in decreased oil values.
Read more: Oil prices fall to $70.10 on weak Chinese inflation, Trump tariffs
Increased supply bets weigh on oil
The orders signed by Trump to enhance domestic energy production added more stress to energy prices after his administration launched initiatives to decrease energy costs. The U.S. president has requested more production from the Organization of Petroleum Exporting Countries which led to a response from the cartel a week ago.
The convergence of market demand reduction with supply increase will push oil prices in unintended directions during upcoming months.
The upcoming Wednesday will see OPEC release its monthly report which contains advanced information about market demand projections and expected changes to cartel production levels.
