Brent Crude Plunges To $60 A Barrel
- 9.04.2025, 11:05
After Trump imposed 104% tariffs on China.
Oil prices have fallen to their lowest in four years. An escalation in the tariff war between the United States and China could hurt demand in the world's two largest economies.
This is reported by Reuters.
Brent crude futures fell 3.8% to $60.4 a barrel. WTIntermediate futures fell 4.1% to $57.1. Both contracts hit their lowest since February 2021.
Brent and WTI crude prices have fallen for a fifth straight session since US President Donald Trump announced massive tariffs on most imports, raising concerns that the global trade war will undermine economic growth and affect fuel demand.
President Donald Trump’s 104% tariffs on Chinese goods took effect on April 9. The tariffs rose another 50% after Beijing refused to lift retaliatory tariffs on American goods by Trump’s deadline.
Beijing vowed not to give in to US blackmail after Trump threatened to impose an additional 50% tariff on Chinese goods unless the country lifted a 34% retaliatory levy.
“China’s aggressive retaliatory measures are hurting the chances of a quick deal between the world’s two largest economies, raising fears of a global recession,” said Ye Lin, vice president of oil commodity markets at Rystad Energy.
Adding to the slump in oil prices, OPEC+ (the Organization of the Petroleum Exporting Countries and its allies, including Russia) last week decided to increase production by 411,000 barrels a day in May. Analysts say the move is likely to lead to a supply glut.
Goldman Sachs forecasts that Brent and WTI prices could fall to $62 and $58 a barrel by December 2025, and to $55 and $51 a barrel by December 2026.
Amid falling oil prices, the price of Russian ESPO crude fell below the Western ceiling of $60 a barrel for the first time.
Earlier, Russia's flagship Urals crude fell to $50 a barrel. The fall in oil prices has increased pressure on the state budget, depriving the Kremlin of the ability to increase spending for the war in Ukraine.