Oil prices saw a slight increase on Monday as concerns over a global economic slowdown, fueled by escalating trade tensions between the United States and other nations, weighed on the market.
Brent crude futures rose by 41 cents, or 0.6%, reaching $70.99 per barrel by 0336 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 40 cents, also up 0.6%, to $67.58 per barrel.
Meanwhile, the price of the OPEC basket of twelve crudes stood at $72.55 a barrel on Wednesday, showing a small increase from the previous day’s price of $72.14, according to the latest figures from the OPEC Secretariat.
Tensions in the Middle East also contributed to market volatility. The U.S. had pledged to continue its military actions against Yemen’s Houthis, a group aligned with Iran, until they cease their attacks on global shipping. Recent U.S. airstrikes, which resulted in at least 53 deaths according to the Houthi-run health ministry, marked the largest U.S. military operation in the region since President Donald Trump’s administration began. Houthi assaults on shipping in the Red Sea have disrupted international trade, triggering a costly military campaign by the U.S. to intercept missiles and drones.
However, both oil benchmarks pared some of their earlier gains after China’s economic data revealed a mixed performance. While industrial output for January and February showed signs of slowing, retail sales growth saw a slight uptick. In response, the Chinese government unveiled a “special action plan” to stimulate domestic consumption and economic recovery amid ongoing U.S. trade tariffs that have impacted key trading partners, including China.
Goldman Sachs analysts, citing a slower-than-expected U.S. economic growth forecast, revised their oil price predictions downward. The firm reduced its December 2025 Brent forecast by $5 to $71 per barrel, with WTI expected to reach $67. Goldman Sachs also adjusted its forecast for 2026, projecting an average of $68 for Brent and $64 for WTI. The analysts noted that oil demand was expected to grow at a slower pace, and that OPEC+ supply would exceed previous projections.
U.S. economic concerns were also reflected in plummeting consumer sentiment, which fell to its lowest point in nearly two and a half years in March. Inflation expectations rose amid concerns that President Trump’s tariffs would drive up prices and harm the economy. U.S. Federal Reserve officials are expected to keep the benchmark overnight interest rate in the range of 4.25% to 4.50% during their upcoming meeting, following a series of rate cuts since September to address the economic implications of the administration’s policies.
