Oil prices show the largest monthly drop since 2021.

Oil prices continue to fall, reaching the largest monthly decline in the last three and a half years. The global trade war is worsening the demand outlook for fuel, while concerns about rising supply are also putting pressure on the market, Reuters reports.Brent crude prices fell by 77 cents (1.2%) to $63.48 a barrel. The price of American West Texas Intermediate (WTI) crude dropped by 74 cents (also 1.2%) to $59.68.Over this month, Brent and WTI prices have fallen by about 15% and 16% respectively, marking the largest percentage drop since November 2021.Both benchmarks sharply declined after U.S. President Donald Trump announced on April 2 tariffs on all imports to the U.S. They then fell further to four-year lows after China responded with its own tariffs, triggering a trade war between the two largest oil consumers in the world.Data released on Wednesday showed that the U.S. economy contracted in the first quarter due to the import of goods that businesses bought to avoid higher costs.According to a Reuters survey, Trump's tariffs have made a global recession this year likely.According to a survey published on Wednesday, China's factory activity declined at the fastest pace in 16 months in April.Consumer confidence in the U.S., meanwhile, fell to its lowest level in nearly five years in April due to rising concerns over tariffs.Oil prices are also suffering due to concerns about rising supply from OPEC+. According to Reuters, several OPEC+ members are suggesting to double oil production in June. The group is set to meet on May 5 to discuss production plans.'There is a real possibility that OPEC+ will continue to bring additional oil to the market amid diplomatic efforts in Ukraine and Iran, if they prove successful. This would mean more international oil at a Time when the trade war is destroying any hope for demand growth,' analysts at PVM noted.According to the American Petroleum Institute, U.S. crude oil stocks rose by 3.8 million barrels last week.