Oil prices fall 2% to 2-week low as trade war concerns dampen demand outlook

Oil prices fell about 2% to a two-week low on Tuesday on expectations OPEC+ will boost output even as U.S. President Donald Trump's on-again off-again trade tariffs could reduce global economic growth and demand for the fuel.

Brent crude futures fell by $1.41, or 2.1%, to $64.45 per barrel by 11:03 a.m. EDT (1503 GMT), while U.S. West Texas Intermediate crude dropped by $1.36, or 2.2%, to $60.69.

That puts both benchmarks on track for their lowest closes since April 10.

Trump's push to reshape world trade by imposing tariffs on imports into the U.S. has made it probable that the global economy will slip into recession this year, according to a majority of economists in a Reuters poll.

China, hit with the steepest tariffs, has responded with its own levies against U.S. imports, stoking a trade war between the top two oil-consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.

"Stalling negotiations between China and the U.S. on trade raises anxiety levels on economic and demand growth prospects once again. It is not even clear whether the two leaders have spoken to one another," said Tamas Varga, an analyst at PVM, a brokerage and consulting firm that is part of TP ICAP.

The U.S. trade deficit in goods widened to a record high in March as businesses ramped up efforts to bring in merchandise ahead of Trump's sweeping tariffs, suggesting trade was a large drag on economic growth in the first quarter.

General Motors , Kraft Heinz  and Electrolux  on Tuesday joined the diverse list of companies that have pulled forecasts for 2025 or slashed outlooks, as Trump's trade war sends a chill through the corporate world.