In 2025, the ongoing global trade war is sending shockwaves through the oil market, triggering a major price drop, disrupting supply chains, and fueling worldwide economic uncertainty.
Oil Prices Take a Dive
Crude oil prices have been steadily falling. Brent Crude recently slipped to around $66.81 per barrel, reflecting increased global supply and weaker demand. Goldman Sachs even warned that prices could crash below $40 per barrel if tensions continue to escalate.
United States β China Trade Tensions Intensify
China imposed a 10% tariff on American crude oil imports, slashing demand for U.S. oil in global markets.
In response, the U.S. hinted at 25% tariffs on oil imports from Canada and Mexicoβkey trade partnersβsparking fears of retaliation and global supply chain disruption.
OPEC+ Ramps Up Supply
As trade tensions rise, OPEC+ responded by boosting oil output by 600,000 barrels per day, aiming to maintain their global market share. However, the International Energy Agency (IEA) warned that growing supply coupled with weakening demand could push oil prices even lower in the coming months.
What It Means for India
For countries like Indiaβone of the worldβs largest oil importersβlower prices are a financial relief. But that benefit may be short-lived. Global uncertainty and disruptions in the supply chain could create new economic pressures back home.
Bottom Line
The global trade war is no longer just a political issueβitβs rapidly transforming into an economic crisis thatβs reshaping energy markets across the world. As tensions rise and countries draw hard lines on trade, the oil industry finds itself at the center of a brewing storm.
