Oil prices drop 2% as Trump threatens more tariffs on China, causing energy equities to decline

From Yahoo Finance: 2025-04-07 15:10:00

Oil prices dropped over 2% as President Trump threatened more tariffs on China, causing stocks to fall. West Texas Intermediate briefly fell below $60 per barrel before settling at $60.70, while Brent closed at $64.21. Trump warned of 50% tariffs if China didn’t remove 34% tariffs. Analysts predict a price floor at $60.

Saudi Arabia cut crude export prices by $2.30/barrel for Asian buyers after OPEC+ announced an output raise. Energy equities like XLE led market declines post-tariff announcement. WTI plummeted over 7% after China imposed 34% tariffs on US goods in response to Trump’s levies. OPEC+ agreed to increase supply by over 400,000 barrels per day in May, deepening crude losses.



Read more at Yahoo Finance: Oil extends losses to drop 2% as Trump threatens more tariffs on China