Oil Declines as Trade War Escalates, Trump Takes Aim at Fed
Oil fell as President Donald Trump stepped up his criticism of Jerome Powell over monetary policy, rattling financial markets, while a growing trade war between the US and China threatens to cripple global energy demand.
West Texas Intermediate futures slid by 2.5% to settle near $63 a barrel, the biggest decline since April 10. Oil demand worries returned to the forefront as China warned countries against striking deals with the US that could hurt Beijing’s interests, while Japan’s Prime Minister Shigeru Ishiba said his country won’t concede to all US demands.
Broader financial markets carried a risk-off tone on Monday, hurting many commodities. A gauge of the dollar fell to the lowest since December 2023 and US stock-index futures retreated after Trump threatened to fire Federal Reserve Chairman Jerome Powell.
Trading volumes trended lower in Monday’s session, with some countries observing holidays to mark Easter and as the May WTI futures contract approached its Tuesday expiry.
Oil has declined sharply this month, touching a four-year low at one point, driven by investors’ fears that the onslaught of tariffs and counter-levies between the US and its biggest trading partners will sap crude demand. The drop has been compounded by the OPEC+ alliance’s decision to bring back production at a faster-than-expected pace, reviving concerns about a supply glut.
Prices:
WTI for May delivery fell 2.5% to settle at $63.08 a barrel in New York.
The more-active June contract settled at $62.41.
Brent for June settlement traded 2.5% lower to settle at $66.26 a barrel.
Source: Bloomberg
