Oil prices plummet 7% to 3-year low on China's tariffs, fears of global recession

From Yahoo Finance: 2025-04-03 22:22:00

Oil prices plummeted by 7% to their lowest in three years after China increased tariffs on U.S. goods, sparking fears of a global recession. Commodities like natural gas and soybeans also dropped, with JPMorgan raising the chances of a recession to 60%. Brent settled at $65.58 a barrel, and WTI at $61.99.

The additional 34% tariffs by China on all U.S. goods, in response to Trump’s tariff hike, caused global markets to tumble. Brent and WTI hit four-year lows at $64.03 and $60.45 respectively. Brent saw its biggest weekly loss in 1.5 years, down 10.9%, while WTI dropped 10.6%, its biggest decline in two years.

Federal Reserve Chair Jerome Powell warned of higher inflation and slower growth due to Trump’s tariffs, forecasting a challenging future for the U.S. central bank. OPEC+ plans to ramp up output by 411,000 barrels per day in May, adding pressure on oil prices. The Russian court ruling on CPC’s export terminal also influenced prices.

Goldman Sachs slashed their December 2025 targets for Brent and WTI by $5 each, citing recession risks and higher OPEC+ supply. HSBC reduced its 2025 global oil demand growth forecast from 1 million bpd to 0.9 million bpd due to tariffs and OPEC+ decisions. Money managers increased their net long U.S. crude futures positions.



Read more at Yahoo Finance: Oil dives 7% to lowest in over 3 years on China’s tariffs