On Monday, April 14, 2025, West Texas Intermediate (WTI) crude oil prices experienced a bearish trend during European market opening, reflecting persistent concerns regarding global economic growth and increasing tensions between the United States and China.
WTI crude for May delivery traded at $61.23, down 27 cents from its previous close and continuing its downward spiral since early April; losing over $10 in two weeks alone, according to Reuters. (Rio Times)
Oil prices have seen a steady decrease since July due to fears that an intensifying U.S.-China trade war could harm global economic growth and reduce fuel demand. China’s recent imposition of retaliatory tariffs of 125% on U.S imports only compounds these worries by potentially disrupting supply chains and undermining industrial activity, according to Reuters reports.
U.S. energy firms have responded to an expected decline in demand by cutting operations, marking a significant reduction of oil rigs since June 2023.
Goldman Sachs recently revised their oil price forecasts downward, projecting that West Texas Intermediate (WTI) crude will average $59 per barrel by 2025 and decline to $55 by 2026. According to this investment bank, increased production from OPEC+ nations as well as elevated recession risks related to global trade conflicts are the primary causes for their predicted price decreases.
Geopolitical tensions and decreased global demand growth further aggravate the bearish sentiment in the oil market, with Goldman Sachs cutting its forecast for global demand growth for fourth quarter 2026 by more than one million barrels a day.
Market participants remain wary as European trading session continues, keeping an eye on international trade relations and economic indicators that could have an immediate effect on oil demand and prices.