Oil prices plummeted on Friday, losing 8% and heading towards their lowest close since the pandemic peak in 2021.
The plunge, driven by a fierce U.S.-China trade war, saw Brent futures slide $5.30 (7.6%) to $64.84 a barrel and U.S. West Texas Intermediate (WTI) crude fall $5.47 (8.2%) to $61.48 by 1254 GMT. Both benchmarks are on pace for their steepest weekly losses in over two years.
After President Donald Trump increased tariffs, Beijing responded with a 34% levy on all U.S. goods, effective April 10. Ole Hansen of Saxo Bank warned, “This effectively locks in a global trade war. It’s a no-win situation that will hurt economic growth and reduce oil demand.” The markets reacted negatively, intensifying the sell-off.
Read: Oil Prices Surge as US Targets Houthis, Asia Stocks Rise
OPEC+ and Oversupply Woes
The pain deepened with OPEC+’s surprise move. The oil cartel and its allies fast-tracked output hikes, planning to pump 411,000 barrels daily back into the market by May triple the earlier 135,000 target. This flood risks swamping an already jittery market. Though U.S. tariffs spared oil and gas, they’re set to stoke inflation and slow growth, hammering crude prices further.
Goldman Sachs slashed its December 2025 forecasts, trimming Brent to $66 and WTI to $62 per barrel—a $5 cut each. Analyst Daan Struyven cautioned, “Recession risks loom large for 2026, alongside OPEC+ oversupply.” With trade tensions flaring and oil barrels piling up, the outlook darkens for a key global commodity.
