Oil prices recovered slightly when markets opened this morning after dropping below $63 at one point yesterday for the first time in in four years.
Prices have fallen sharply over fears on how global tariff chaos will impact demand.
Brent crude, which is the global benchmark price, fell below $63 a barrel on Monday morning - the first time that has happened since the beginning of 2021.
That marked a huge 17% drop since Donald Trump made his "Liberation Day" tariff announcements on April 2.
By Monday afternoon, prices had clawed back around 3%, sitting at just over $67, but fell away again.
When markets opened this morning, brent crude was up almost 1%, sitting at just under $65.
The Times reports analysts at Morgan Stanley believe the “twin-headwind of higher-than-expected trade tariffs and faster-than-expected Opec+ quota increases” will impact oil prices in coming months.
They cut their oil demand forecast for the second half of the year by half a million barrels per day and slashed their oil price forecasts for the same period by $5 per barrel, to $62.50 per barrel.