Oil prices slipped on Thursday as markets weighed macroeconomic concerns, including the risk that tariff wars between the U.S. and other countries could hurt global demand.

Brent futures were down 54 cents, or 0.8%, at $70.41 a barrel at 11:28 a.m. EDT (1525 GMT). U.S. West Texas Intermediate crude futures fell 63 cents, or 0.9%, to $67.05 a barrel.

The International Energy Agency reported that global oil supply could exceed demand by around 600,000 barrels per day this year, with U.S.-led supply growth and global demand now expected to rise by just 1.03 million bpd, off last month's forecast by 70,000 bpd. Demand growth will be driven largely by Asia, the IEA said, specifically China.

The report cited deteriorating macroeconomic conditions, including escalating trade tensions.

On Wednesday, U.S. President Donald Trump threatened to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by Trump.

Trade tensions have rattled investors, consumers and business confidence. Along with sharp government spending cuts, labor markets have been roiled with some fearing a U.S. recession.

"I think (tariffs) are certainly impacting on the market's perception of (oil) demand growth in 2025, and the expectation is that the tariffs and retaliatory tariffs are going to ultimately impact the consumer," said Andrew Lipow, president of Houston-based Lipow Oil Associates.

Also on Thursday, Russian President Vladimir Putin said Moscow agreed with U.S. proposals to stop fighting but any ceasefire should lead to a long-lasting peace and deal with root causes of the conflict.
The market is weighing the potential for a short-term ceasefire between Russia and Ukraine, though UBS analyst Giovanni Staunovo said Thursday he "remains skeptical" that such an outcome would lead to the availability of more Russian oil.

With the U.S. president's stated commitment to cheaper oil, Citi analysts said their outlook for Brent by the second half of 2025 is $60 a barrel.

On Wednesday, the Organization of the Petroleum Exporting Countries said Kazakhstan led a sizeable jump in February crude output by OPEC+. The producer group seeks to enforce adherence to agreed output targets, even as it intends to unwind production cuts.

Worries about flagging jet fuel demand weighed further on markets, with JP Morgan analysts saying that U.S. Transportation Security Administration data showed "passenger volumes for March have decreased by 5% year-over-year, following stagnant traffic in February".

However, the JP Morgan analysts added: "As of March 11, global oil demand averaged 102.2 million barrels per day, expanding 1.7 million barrels per day year-over-year and exceeding our projected increase for the month by 60,000 barrels per da

Source: Investing.com