Oil Returns to Losses as Market Concerns Over Trade War Persist
Oil extended a volatile run as investors assessed abrupt shifts in US trade policy, with futures returning to losses following a relief rally on Wednesday.
West Texas Intermediate plunged to trade below $60 a barrel, once again sitting near a four-year low. In the previous session, prices posted the biggest intraday gain since October. With markets in turmoil, President Donald Trump announced a 90-day halt on higher tariffs against dozens of nations, but he also raised duties on China to 125%.
Equities fell on Thursday as fresh data showing that US inflation cooled broadly in March failed to allay trader fears of a tariff-induced economic slowdown, further pressuring crude.
Oil prices are dramatically lower compared with the start of the month as the aggressive US tariff push sparked warnings of a global recession that would depress energy demand.
At the same time, the OPEC+ alliance committed to loosening output curbs at a faster pace that expected, spurring concerns about a bigger global glut. Kazakhstan, which has repeatedly exceeded its production limits, is again holding negotiations with oil companies on cutting output to comply with its quota, according to Interfax.
China is the largest oil importer, and the higher US levies may weigh on the nation’s consumption of fuels and petrochemicals. Even before Trump’s return to the White House, usage of gasoline and diesel had been contracting, in part because of a drawn-out property crisis, and in part because of the spread of electric vehicles and renewables.
WTI fell 4.1% to $59.78 a barrel at 10:33 a.m. in New York. Brent slid 3.7% to trade at $63.05 a barrel.
Source: Bloomberg
