Oil Prices Experience Significant Drop

In a dramatic turn of events, crude oil prices have continued their downward trajectory, witnessing a sharp decline of over 6% this Wednesday. This significant drop comes in the wake of China's announcement to increase tariffs on US goods from 34% to a staggering 84%, a move seen as a direct response to the recent tariffs imposed by US President Donald Trump on Chinese imports.

Market Reaction

The market's reaction was immediate and pronounced. West Texas Intermediate (WTI) for May's settlements saw a 6.55% drop, trading at $55.72 per barrel by 7:03 am ET. Similarly, Brent for June's deliveries wasn't spared, nosediving by 6.22% to $58.99 per barrel at 7:04 am ET.

Underlying Causes

The root of this turmoil lies in the escalating trade tensions between the world's two largest economies. With both nations imposing hefty tariffs on each other's goods, the global market is bracing for the ripple effects of what could be a prolonged trade dispute.