Oil market dove to 3-year lows, pressured by trade tensions and easing supply concerns
Oil prices plunged to three-year lows on Friday amid escalating trade tensions between the world’s largest economies. Adding weight to sentiment was the prospect of supply disruptions from a key oil export diminished.
Oil prices plunged to three-year lows on Friday amid escalating trade tensions between the world’s largest economies. Adding weight to sentiment was the prospect of supply disruptions from a key oil export diminished.
Brent crude dropped $4.56, or 6.5%, to settle at $65.58 a barrel.
West Texas Intermediate (WTI) fell $4.96, or 7.4%, to close at $61.99 a barrel.
The selloff accelerated after China imposed retaliatory tariffs of 34% on US goods, effective 10 April, matching trade restrictions announced by the US earlier in the week. The escalation exacerbated fears of recessionary fallout, with analysts warning of a prolonged drag on fuel consumption and a dimmer outlook for demand growth.
Meanwhile, the prospect of easing supply was reinforced after a Russian court ruled to maintain operations at the Caspian Pipeline Consortium terminal, offsetting earlier expectations of a potential supply disruption. This intensified concerns over OPEC+’s planned production hike—set to increase output by 411,000 barrels per day in May.
Written by: Derek Yong