ANKARA 

Oil prices fell further on Wednesday, weighed down by demand concerns stemming from the trade war between the world's two largest oil consumers the US and China and growing expectations of a supply glut.

International benchmark Brent crude fell by around 1.09%, trading at $62.31 per barrel at 10.34 a.m. local time (0734 GMT), down from $63 at the previous session's close.

US benchmark West Texas Intermediate declined by about 1.25%, settling at $59.19 per barrel, compared to its prior session close of $59.94.

Both benchmarks fell to their lowest level in four years on April 9, after a sharp drop triggered by US President Donald Trump's April 2 announcement of new tariffs on imports from key trade partners and China's swift retaliation.

While recent reciprocal moves in trade talks have generated modest optimism in the markets, the constantly changing tariff rhetoric has kept alive concerns over a potential long-term slowdown in economic activity.

Mounting concerns over weak demand and a potential supply glut have pushed oil prices toward their sharpest monthly decline since November 2021, with Brent and WTI crude both losing more than 16%.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are expected to increase production in June, stoking fears of a widening supply glut.

Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman are scheduled to meet on May 5 to set their output levels.

Ceasefire talks between Russia and Ukraine, along with ongoing nuclear negotiations between the US and Iran, are also helping ease geopolitical tensions and influencing the direction of oil prices.

Meanwhile, the American Petroleum Institute (API) reported that US crude inventories rose by 3.76 million barrels last week, fueling demand concerns in the world's largest oil consumer and putting additional downward pressure on prices.

The US Energy Information Administration (EIA) is expected to release official inventory data later in the day.