Global crude oil prices nosedived by more than 6 percent on Wednesday as tensions between the United States and China intensified, raising fears of a full-blown trade war and a potential global economic slowdown.
Data from OilPrice.com revealed that West Texas Intermediate (WTI) crude futures fell sharply by $4.01, or 6.7 percent, to $56.06 per barrel. Meanwhile, Brent crude slipped to $59.33 per barrel—the steepest single-day decline since February 2021.
The sharp drop came after U.S. President Donald Trump confirmed the imposition of a 104 percent tariff on Chinese imports. In retaliation, Beijing announced an 84 percent tariff on American goods, which is set to take effect on April 10.
Market analysts say the tit-for-tat tariff escalation has spooked investors and raised concerns over a potential global recession, which would significantly dampen oil demand.
Adding further pressure to the market, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) recently agreed to ramp up oil production starting in May, a move that could exacerbate the existing supply glut.
Traders are now closely watching developments between the world’s two largest economies, as any further escalation could send shockwaves across global markets.
Comments