New York: Oil prices experienced a significant decline, dropping to their lowest levels in over four years during early trade on Wednesday. This decrease is attributed to growing concerns about demand, fueled by an escalating tariff war between the United States and China, the two largest economies globally, alongside an increasing supply outlook.
According to Qatar News Agency, Brent futures fell by $2.13, or 3.39%, to settle at $60.69 per barrel, while US West Texas Intermediate crude futures decreased by $2.36, or 3.96%, reaching $57.22 per barrel. This marks the lowest point for Brent since March 2021 and for WTI since February 2021.
The decline in oil prices has been consistent over the past five trading sessions, following US President Donald Trump’s announcement of extensive tariffs on most imports. This move has sparked concerns about a potential global trade war, which could negatively impact economic growth and reduce fuel demand.
On Wednesday, the US is set to implement a 104% tariff on China, as confirmed by a White House official during a briefing on Tuesday. This decision adds an additional 50% to the existing tariffs after Beijing failed to remove its retaliatory tariffs on US goods by a Tuesday noon deadline set by Trump.