Oil Set for Historic April Selloff as Trade War Darkens Outlook
Oil headed for the worst April performance on record on signs that the US-led trade war is hurting economic growth and energy demand, and as an industry group flagged a rise in crude stockpiles.
Global benchmark Brent — which fell toward $64 a barrel — has slumped by more than 14% this month, the largest loss for that period since the contract started trading in 1988. West Texas Intermediate was near $60 a barrel. Data later on Wednesday may confirm a slowdown in US economic growth, after figures showed that consumer confidence slumped to an almost five-year low.
Nationwide commercial crude stockpiles, meanwhile, rose 3.8 million barrels last week, according to an estimate from the American Petroleum Institute, which also saw a modest climb at the key storage hub in Cushing, Oklahoma.
Crude has been battered this month, touching a four-year low, as US President Donald Trump's sweeping trade levies — including on top importer China — have blunted the outlook for energy demand. At the same time, OPEC has been loosening output curbs, with JPMorgan Chase & Co. warning that the cartel may opt to accelerate planned supply increases at a meeting next week.
Elsewhere, Russia's oil exports edged higher for a second week, with almost half of the tankers sanctioned in previous years now back hauling the producer's barrels. Crude flows from all Russian ports in the four weeks to April 27 rose to 3.26 million barrels a day, up by 1% from the previous week.
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With assistance from Yongchang Chin.
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