Oil prices tumbled to their lowest level in more than four years on Wednesday as escalating trade tensions and unexpected supply increases from Opec+ rattled global markets.
Brent crude, the international benchmark, dropped as much as 5.2% to $58.46 a barrel, falling below the $60 mark for the first time since February 2021.
The sharp fall came amid growing fears that President Trump’s sweeping global tariffs, introduced on 2 April, would dampen global growth and suppress energy demand. At its lowest point, Brent had slumped nearly 20% from its level when the tariffs were first announced.
The US benchmark, West Texas Intermediate (WTI), also dropped as much as 5.3% to $55.10, before rebounding to $62, up 4% on the day. Brent crude ended the day at $64.82, up 3.5%, after markets rallied in response to Trump’s surprise decision to pause tariff increases for 90 days — excluding China.
Adding to the pressure on oil prices was a larger-than-expected production increase by Opec+ — the alliance of major oil-producing countries including Saudi Arabia, Russia and Iraq. The group announced a combined output boost of 411,000 barrels per day from May, far higher than the 135,000 barrels per day analysts had forecast.
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