Oil prices continue to fall amid US President Donald Trump's decisions. On Monday, April 7, they fell by more than 3%. Growing tensions between the US and China have raised fears of a recession, which could lead to a decline in oil demand.
Reuters writes about this.
In particular, Brent crude futures fell $1.41, or 2.15%, to $64.17 per barrel, while West Texas Intermediate crude futures lost $1.35, or 2.18%, to $60.64. At the session low, both Brent and WTI prices fell more than 3%. This decline led to the price reaching its lowest level since April 2021.
"Oil prices fell sharply by 7% on Friday after China increased tariffs on US goods, escalating a trade war that has led investors to assess a higher probability of a recession. Last week, the price of Brent fell by 10.9%, while WTI lost 10.6%," the agency reported.
Vandana Hari, founder of Vanda Insights, an oil market research firm, said:
"It's hard to see a bottom for oil unless the panic in the markets subsides, and it's hard to imagine that will happen unless Trump says something to stop the growing fears of a global trade war and recession."
It is worth recalling that in response to Trump's tariffs, China announced on Friday that it would impose additional tariffs of 34% on American goods, confirming investors' fears of the start of a full-scale global trade war.
"Imports of oil, gas and petroleum products have been exempted from Trump's new broad tariffs, but these policies could fuel inflation, slow economic growth and intensify trade disputes, which would negatively affect oil prices," the material says.
Also read in "Apostrophe" who will be most affected by the US's restrictive tariffs .