Global oil benchmark Brent crude futures dropped below $68 a barrel on Thursday, marking the first time in nearly three and a half years that prices have fallen to such levels. Brent oil prices reached a 3.5-year low of $68.85 per barrel, a figure last seen in August 2021.

The decline in prices is largely attributed to the escalating trade war between the United States and China, with China poised to impose retaliatory sanctions starting March 10, 2025. Additionally, uncertainty surrounding OPEC+ plans to potentially increase output from April 2025 has further influenced the downward trend in oil prices.

According to Arif Habib Limited, the trade restrictions are anticipated to slow global economic growth and diminish energy demand. Analysts predict continued volatility in oil prices, particularly due to sluggish demand from China amid the global economic slowdown.