- Brent crude climbs after falling 14% in three days.
- US-China trade war remains the primary market focus.
- Trading volumes hit record highs during oil’s sharp dip.
Oil prices have inched higher after a steep decline. Brent crude is rebounding toward $65 a barrel and WTI is stabilizing around $61. The prior drop, one of the steepest in recent years, was largely driven by investor concerns over escalating tensions between the U.S. and China.
Market participants are now recalibrating their outlook as the immediate panic subsides. While prices are recovering, volatility remains high, and traders are closely watching for policy signals from both Washington and Beijing.
Crude Oil Climbs Back Amid Trade War Anxiety and Record Trading Volumes
After a sharp three-day fall, crude oil prices have begun to recover. Brent crude is inching toward $65 a barrel, while WTI steadies around $61. The initial slump, triggered by fears of a prolonged trade conflict between the U.S. and China, led to a 14% drop in Brent prices. This was the steepest fall in years.
The trade war escalated after President Trump announced plans to raise tariffs by 50% on Chinese imports. In response, Beijing vowed to retaliate, deepening concerns about a slowdown in global economic activity and, by extension, energy demand. These developments rattled markets and pressured oil prices sharply downward.
During the decline, oil trading volumes spiked to record highs. Investors rushed to adjust positions. This sudden rush for the exits underscored the fragile sentiment in commodities markets, where geopolitical events have an outsized impact on pricing and outlook.
Though prices have started to climb again, the market remains fragile. Traders are awaiting the next moves from both governments. Any sign of escalation or resolution is likely to cause swift reactions. Until then, oil will remain at the mercy of headlines and global diplomacy.
The recent rebound in oil prices offers only a temporary relief. The energy market remains on edge, vulnerable to every twist in the ongoing US-China trade conflict.
“In a time of turbulence and change, it is more true than ever that knowledge is power.” – John F. Kennedy
