Brent crude oil prices plunged nearly 4% on Friday, hitting their lowest level since early May, as escalating tensions between the United States and China reignited fears of a global economic slowdown.
Brent futures settled at $62.73 per barrel, down 3.82% on the day and extending a month-long slide that has seen prices drop 5.48%. Compared to the same period last year, Brent is down more than 20%, according to data from contracts for difference (CFD) tracking the global benchmark.
The sharp decline followed remarks from U.S. President Donald Trump, who threatened a “massive increase” in tariffs on Chinese goods and suggested he might cancel his upcoming meeting with Chinese President Xi Jinping. The renewed trade friction has deepened investor anxiety over global demand for energy, which had already been under pressure from slowing industrial activity in key markets.
Analysts say the trade standoff could delay recovery in global oil consumption, particularly in Asia, the world’s largest oil-importing region. “The market is responding not just to headlines, but to the growing realization that demand growth could stay weak well into next year,” said one commodities strategist.
Adding to the bearish mood, global oil supplies continue to rise, with higher production reported from both OPEC+ and non-OPEC producers. The increase has offset earlier supply concerns stemming from geopolitical risks in the Middle East.
Meanwhile, reports of progress toward a ceasefire in Gaza have further eased geopolitical risk premiums that had buoyed prices earlier in the quarter.
Brent crude reached its record high of $147.50 per barrel in July 2008, underscoring how far prices have fallen amid a shifting energy landscape dominated by slowing demand, rising output, and geopolitical uncertainty.
If sustained, the decline in oil prices could offer some relief to oil-importing countries like Ghana, where lower Brent levels would help reduce the national fuel import bill and ease pressure on foreign reserves. Cheaper oil could also translate into lower transport and food prices, potentially helping to moderate inflation and stabilize the cedi, provided the exchange rate remains steady.
With trade tensions and supply growth weighing on sentiment, analysts expect volatility to persist in the coming weeks as markets await clearer signals on economic policy and global energy demand trends.
