Global oil benchmark Brent crude futures fell below $68 a barrel on Thursday for the first time in nearly three and a half years after the escalating US-China trade war and uncertainty on whether OPEC+ would increase output from next month.
Brent oil prices have fallen to a 3.5-year low of $68.85/bbl, a level last seen in August 2021.
According to Arif Habib Limited, this decline is attributed to the escalating US-China trade war, with China set to impose retaliatory sanctions starting on 10-Mar-25. Moreover, concerns over plans of OPEC+ to increase output from Apr’25 also influenced the price reduction.
The trade restrictions are expected to slow down global economic growth and reduce energy demand.
Analysts expect continued volatility in oil prices due to the global economic slowdown, particularly sluggish demand from China.
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