Oil prices fall amid recession fears due to US-China trade standoff
Kyiv • UNN
WTI oil prices fell due to escalating trade tensions between the US and China, raising fears of recession and falling demand. OPEC+ accelerated production increases.
Global oil prices continued their decline on Monday, which began last week. WTI fell by more than 4% as escalating trade tensions between the United States and China raise concerns about a recession that will lead to lower demand for oil.
This is reported by Reuters, writes UNN.
Brent crude futures fell by $2.54, or 3.9%, to $63.04 a barrel at 09:45 Kyiv time. While West Texas Intermediate crude futures in the US fell by $2.5, or 4.03%, to $59.49. Both benchmarks fell to their lowest levels since April 2021.
Oil prices fell 7% on Friday as China raised tariffs on US goods, escalating a trade war that led investors to raise the likelihood of a recession. Last week, Brent lost 10.9% and WTI lost 10.6%.
It is difficult to predict the minimum price for crude oil if the panic in the markets does not subside. And it is difficult to predict how events will unfold if Trump does not say something to stop fears of a global trade war and recession
In response to the increase in import duties by US President Donald Trump, China said on Friday that it would impose additional customs duties of 34% on American goods, confirming investors' fears of a full-scale global trade war.
Imports of oil, gas and petroleum products have been exempted from Trump's increased tariffs, but such a policy could fuel inflation, slow economic growth and exacerbate trade disputes, which will affect oil prices.
Federal Reserve Chairman Jerome Powell said on Friday that the new tariffs have "exceeded expectations" and economic consequences, including spikes in inflation and slower growth, are very likely.
Adding momentum to the decline, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to accelerate plans to increase production. The group now aims to increase the level of supply to 411,000 barrels per day (b/d) already in May, compared to the previously planned 135,000 b/d.
Let us remind you
Bitcoin fell by 8% due to Trump's tariffs, losing almost all the gains it showed after the presidential election in the United States. Ethereum, XRP and Solana also suffered significant losses, and global markets collapsed.
