Global oil prices tumbled to their lowest levels in three years as concerns over weakening U.S. demand and increased crude supply weighed on the market. Brent crude fell below $70 per barrel on Wednesday, while West Texas Intermediate (WTI) dropped more than 4% to $65.27.
According to the Financial Times (FT), the decline follows a larger-than-expected rise in U.S. crude stockpiles reported by the Energy Information Administration, signaling reduced consumption and slowing economic activity. The situation was exacerbated by President Donald Trump’s announcement of new trade tariffs on Canada, Mexico, and China, fueling fears of an economic downturn that could further dampen oil demand.
OPEC+ also played a critical role in driving prices lower. On Monday, the cartel confirmed it would move forward with a long-delayed plan to phase out production cuts, effectively increasing global oil supply. Over the next 18 months, eight key OPEC+ members, including Saudi Arabia and Russia, are set to raise production by a combined 2.2 million barrels per day.
Market analysts see these developments as a major shift in oil dynamics, with oversupply concerns now outweighing geopolitical risks that have historically kept prices elevated. Some experts warn that if demand continues to weaken, prices could fall even further, adding to broader economic uncertainty.
