Oil Prices Take a Hit Amid Trade Tensions

Crude oil prices continued to decline sharply on Thursday, with West Texas Intermediate (WTI) experiencing a significant drop of over 3%. This downturn reflects growing investor concerns over the escalating trade war between the United States and China.

Retaliatory Tariffs Spark Demand Worries

The immediate catalyst for the drop was the enforcement of Chinese retaliatory tariffs on US imports, which has raised alarms about potential weakening in global demand for oil. Chinese officials have criticized the US for employing tariffs "as a weapon," a response to the US decision to increase duties on Chinese goods to 125%.

Market Reaction

By 7:46 am ET, WTI for May deliveries had fallen by 3.24%, trading at $60.33 per barrel. Shortly thereafter, Brent crude for June settlements saw a 2.99% decrease, priced at $63.53 per barrel.