Oil prices experienced a downturn on Friday as the ongoing trade war between the United States and China continued to fuel concerns about global economic growth. The escalating tensions have cast a shadow over the demand outlook for crude oil, leading to a sell-off in the market.

The price of Brent crude, the international benchmark, fell by 1.5% to $63.50 a barrel. West Texas Intermediate (WTI) crude, the U.S. benchmark, also declined by 1.7% to $56.30 a barrel.

Analysts attribute the price decline to growing fears that the trade war will significantly impact global economic activity. A slowdown in economic growth typically translates to reduced demand for oil, putting downward pressure on prices.

“The market is clearly worried about the potential impact of the trade war on global demand,” said John Smith, an energy analyst at a leading investment bank. “If the trade dispute continues to escalate, we could see further declines in oil prices.”

The latest round of tariffs imposed by both the U.S. and China has heightened concerns about a prolonged trade conflict. Investors are closely watching for any signs of a resolution, but the outlook remains uncertain.

In addition to the trade war, oil prices are also being influenced by:

• OPEC Production Cuts: The Organization of the Petroleum Exporting Countries (OPEC) and its allies have been cutting production to support prices.
• Geopolitical Risks: Tensions in the Middle East continue to pose a risk to oil supplies.
• U.S. Crude Inventories: Weekly data on U.S. crude inventories provides insights into the balance between supply and demand.

The combination of these factors is creating a volatile environment for oil prices. Traders will continue to monitor developments in the trade war and other key indicators to assess the future direction of the market.