Oil to Suffer Biggest Fall in 4 Years

Petroleum prices extended declines on Wednesday and were set for their largest monthly drop in almost three and a half years as the global trade war eroded the outlook for fuel demand, while concerns over mounting supply also weighed.Retracing some earlier losses, Brent crude futures were down 71 cents, or 1.11%, at $63.54 U,S, per barrel. Elsewhere, U.S. West Texas Intermediate crude futures dropped 57 cents, or 0.94%, to $59.85 a barrel.So far this month, Brent prices have lost 15%, and WTI has lost around 16%, the biggest percentage drops since November 2021.Both benchmarks slumped after U.S. President Donald Trump’s April 2 announcement of tariffs on all U.S. imports. They then sank further to four-year lows as China responded with levies, stoking a trade war between the top two oil-consuming nations.Trump’s tariffs have made it probable the global economy will slip into recession this year, according to a Reuters poll.China’s factory activity contracted at the fastest pace in 16 months in April, a factory survey showed on Wednesday.U.S. consumer confidence slumped to a nearly five-year low in April on growing concerns over tariffs, data showed on Tuesday.