Oil markets have now fallen for a third consecutive week, with Brent crude dropping more than 2% as the effects of President Trump’s broad tariffs on China outweigh recent sanctions against Iran.
Traders are increasingly worried about worldwide fuel demand, especially in China, where private refiners have cut run rates to levels not seen since the pandemic. These reduced operations signal weaker domestic consumption and contribute to the downward pressure on prices.
Although some technical indicators point to oversold conditions, market participants remain focused on the risk of an economic slowdown tied to intensifying trade tensions. As China prepares retaliatory measures in response to the tariffs, uncertainty about future growth and demand is adding to the bearish sentiment in oil markets.
Supply-side factors such as sanctions and geopolitical developments continue to influence trading, but for now demand concerns—led by China’s refining activity and the broader trade dispute—are driving market direction. Participants will be watching upcoming economic data and policy announcements closely for signs that either confirm a sustained drop in demand or hint at stabilization.