Oil prices extended losses for the third consecutive session during Asian deals on Wednesday, poised for their largest monthly fall since November 2021, as the ongoing global trade war and signs of weakening demand continued to weigh on sentiment.
By 2:45 pm AEST (4:45 am GMT), Brent crude futures had declined $0.76, or 1.2%, to $63.49 per barrel, while United States West Texas Intermediate (WTI) crude fell $0.84, or 1.4%, to $59.58 per barrel.
Both benchmarks have dropped sharply in April, with Brent down 15% and WTI shedding 16% - the steepest monthly declines in over three years.
Markets were rattled by growing expectations of a global economic slowdown. U.S. consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs.
In addition, Chinese manufacturing activity shrank at the fastest pace in 16 months.
Barclays cut its Brent crude forecast by $4 to $70 per barrel for 2025 and projected $62 for 2026, warning of "a rocky road ahead for fundamentals" as trade tensions rise and OPEC+ shifts its output strategy.
On the supply side, traders are bracing for possible increases from the Organisation of the Petroleum Exporting Countries and allies (OPEC+).
Meanwhile, U.S. crude oil inventories added further pressure to prices after rising by 3.76 million barrels last week, according to data from the American Petroleum Institute, exceeding market expectations of a 390,000 barrel build.
