Oil prices dropped 7% on Friday as China increased tariffs on U.S. goods, intensifying trade war concerns and heightening recession fears. Last week, Brent fell 10.9%, and WTI dropped 10.6%. Analysts warn that prices may continue to decline unless global trade and recession concerns ease, potentially requiring intervention from President Trump.In response to U.S. tariffs, China announced it would impose 34% additional levies on American goods, fueling fears of a global trade war.
While oil, gas, and refined products were exempt from tariffs, the broader policies could drive inflation, slow economic growth, and worsen trade tensions, putting downward pressure on oil prices.Federal Reserve Chair Jerome Powell stated on Friday that Trump’s new tariffs are “larger than expected,” and warned of significant economic impacts, including higher inflation and slower growth.
Additionally, OPEC+ accelerated its plans to increase output, now aiming to boost production by 411,000 barrels per day (bpd) in May, up from the initial 135,000 bpd.Sugandha Sachdeva, founder of SS WealthStreet, noted that the planned increase in supply, reversing two years of output cuts, marks a significant shift in market dynamics and poses a major challenge for oil prices.
Over the weekend, top OPEC+ ministers emphasized the need for full compliance with output targets and required overproducers to submit compensation plans by April 15.Iran rejected U.S. demands for direct nuclear talks or strikes. Russia claimed to have captured Basivka in Ukraine’s Sumy region and was attacking nearby settlements.
