Oil prices dipped into a four-year low as spiralling US-China trade relations threatened global demand
The oil market sank to a four-year low on Monday, 7 April 2025, after Washington threatened further tariffs in response to Beijing’s latest retaliatory levies, reinforcing fears of an escalating US-China trade war.
The oil market sank to a four-year low on Monday, 7 April 2025, after Washington threatened further tariffs in response to Beijing’s latest retaliatory levies, reinforcing fears of an escalating US-China trade war. The move deepened investor concerns over potential repercussions for global economic growth and fuel demand.
Brent crude settled $1.37 lower, or 2.1%, at $64.21 per barrel.
US West Texas Intermediate (WTI) fell by $1.29, or 2.1%, to close at $60.70 per barrel.
The US government signalled a relentless stance on its reciprocal tariff measures following China’s imposition of a 34% tariff on all US goods, warning that an additional 50% levy could follow on 9 April if Beijing fails to reverse course—alongside a potential suspension of scheduled bilateral negotiations.
Further highlighting the deteriorating trade environment, the European Commission unveiled plans to implement a 25% countermeasure on US steel and aluminium, in response to Washington’s February tariff hike on global imports of the same.
Written by: Derek Yong