Oil prices plunged to their lowest level in four years as a deepening global trade war, particularly between the U.S. and China, raises alarm over weakening energy demand.
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Oil extended a brutal selloff that’s driven prices to a four-year low as an intensifying trade war threatens to batter global energy demand.
West Texas Intermediate fell for a fifth day, losing as much as 3.3% to $57.64 a barrel, after Brent closed below $63 on Tuesday. While the White House said it is open to deals with some trade partners, tit-for-tat retaliation against China — the largest crude importer — and Beijing’s pusback have sparked fears of a recession.
Crude has been driven lower as US President Donald Trump’s aggressive trade agenda has eviscerated appetite for risk assets, with oil joining other commodities and equities in a swift and deep global market slump. The losses have been compounded by a decision by OPEC+ to loosen supply curbs at a faster clip than previously expected.
Trump is pushing ahead with higher duties on roughly 60 trading partners that he dubbed the “worst offenders,” with the new levies set to take effect after midnight New York time. Most critically, the president plans to forge ahead with what would amount to a 104% duty on many Chinese goods.
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Published on April 9, 2025
