Oil Prices React to China's Retaliatory Tariffs

In a significant market movement, crude oil prices experienced a decline of more than 1% this Thursday. This shift comes in the wake of China implementing retaliatory tariffs on U.S. goods, sparking fears of a potential downturn in demand. The tariffs, which have now taken effect, represent the latest development in the ongoing trade tensions between the two economic powerhouses.

US Response and Market Impact

Meanwhile, U.S. President Donald Trump has opted to maintain tariffs against China, while announcing a 90-day pause on most levies for other countries. This decision has further complicated the global trade landscape, with investors and market analysts closely monitoring the situation for its potential impact on international trade relations and oil demand.

At 3:34 am ET, West Texas Intermediate (WTI) for May deliveries dropped by 1.23%, trading at $61.56 per barrel. Similarly, Brent crude for June settlements saw a 1.30% decrease, with prices at $64.65 per barrel.