Oil suffers deepest monthly loss since 2021

Oil drilling rigs

Oil prices slumped today, April 30, suffering their deepest monthly loss in nearly three years, amid concerns about weak global demand for crude due to trade tensions.

Brent crude futures for July delivery (the most active) dropped 1.76%, or $1.13, to close at $63.12 a barrel.

WTI crude futures for June delivery plunged 3.66%, or $2.21, to $58.21—the lowest close for the most actively traded contract since March 2021.

The global benchmark lost 15% of its value in April, while its US counterpart fell 18% over the same period, both suffering their deepest monthly percentage losses since November 2021.

This came amid fears of a global economic recession following US President Donald Trump's imposition of heavy tariffs on a number of countries in early April.

Despite the 90-day suspension of the decision and the implementation of a 10% tariff on all countries except China, trade tensions continued to dominate investor sentiment, especially after the escalation of trade tensions between Washington and Beijing.

Furthermore, data released today showed that industrial activity in China contracted at the steepest pace in 16 months, and the US economy contracted in the first quarter of the year, exacerbating concerns about a slowdown in global demand for oil.