Oil suffers biggest 5-day drop since 2022
Oil prices plunged to a four-year low on Wednesday in their worst five-day decline in three years, while some commodities, including base metals, tumbled as the trade war between China and the United States escalated.
Shares in Asia extended losses on Wall Street as U.S. President Donald Trump appeared set to press ahead with 104 percent tariffs on Chinese goods as fears of a global recession gripped financial markets.
"Crude oil extended losses amid signs of escalation in the trade war," ANZ said in a note. "Copper has lost almost 10 percent since Trump announced his reciprocal tariffs on major trading partners."
The United States said on Tuesday that higher tariffs on Chinese imports would take effect shortly after midnight, even as the Trump administration moved to start talks with other trading partners targeted with sweeping tariffs.
Oil prices plunged to their lowest in more than four years on growing demand concerns from a tariff war between the U.S. and China, the world’s two largest economies, and the prospect of a supply crunch.
“China’s aggressive retaliation reduces the chances of a quick deal between the world’s two largest economies, fueling growing fears of a global economic recession,” said Ye Lin, vice president of oil commodity markets at Rystad Energy.
China’s expected oil demand growth of up to 100,000 barrels per day “is at risk if the trade war drags on for longer, however, stronger stimulus to boost domestic consumption could mitigate the damage,” he said.
Source: Investing.com
