Oil extended slide as US-China trade war escalated, pressuring price forecasts

Oil prices faltered for a fourth consecutive session on Tuesday, 8 April 2025, as the escalation of the US-China trade war deepened investor concerns. Macroeconomic risks stemming from the frictions remained central to market sentiment, outweighing support from potential supply disruptions.

Brent crude settled down $1.39, or 2.16%, at $62.82 a barrel.

West Texas Intermediate (WTI) closed $1.12 lower, or 1.85%, at $59.58 a barrel.

The latest blow followed confirmation that the US government would impose a 104% tariff on Chinese goods on 9 April, intensifying the standoff after Beijing held firm on its 34% retaliatory levy. With fears of a broader global slowdown mounting, analysts at Goldman Sachs revised their outlook, projecting Brent and WTI to fall to $62 and $58 per barrel, respectively, by December.

Meanwhile, support from the supply side remained limited. Discussions of tighter sanctions on Iran surfaced as Washington prepared to engage Tehran over its nuclear program, warning that failure to reach an agreement could lead to more intense export restrictions.

Written by: Derek Yong