Investing.com -- UBS has revised its global oil demand growth forecast for this year, predicting slower growth due to the impact of U.S. tariffs on the global economy.

The bank’s strategist, Giovanni Staunovo, has indicated that despite some signs of a tight oil market, the tariffs and continuing uncertainty about the U.S. administration’s next moves are likely to hinder economic growth.

The bank has reduced its projection for global oil demand growth this year by 400,000 barrels a day, bringing it down to 800,000 barrels a day. Furthermore, UBS now anticipates an oversupply of 400,000 barrels a day, a significant increase from its prior estimate of 100,000 barrels a day.

In terms of pricing, Brent crude is now expected to average $68 a barrel, a substantial decrease from the previously forecasted $80 a barrel.

However, UBS has also warned that prices could potentially fall into the $40-$60 range in the forthcoming months, should the trade war between the U.S. and China escalate further.

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