Oil falls again as trade war concerns continue to rattle markets

Oil prices dropped again after a brief rally triggered by US President Donald Trump’s decision to pause tariffs for dozens of countries while hiking duties on Chinese imports to 125%. Investors are growing uneasy over the sharp shifts in US trade policy, Bloomberg reports.

Prices for both Brent and WTI crude have fallen below $65 and $62 per barrel, respectively. Meanwhile, nearer-term contracts are trading at a discount to longer-dated ones, which is a clear sign of market weakness, as noted by the agency.

According to Bloomberg, China remains the world's top oil importer, and the latest US tariff hikes could further dampen the country's fuel demand. Even before Trump's return to the White House, China's appetite for energy had been weakening—partly due to its prolonged real estate crisis and partly because of growing electric vehicle adoption and renewable energy expansion.