Oil Prices Continue to Decline

Crude oil prices continued to lose ground on Thursday, with West Texas Intermediate (WTI) plummeting over 3%. This significant drop reflects growing concerns among investors about the potential for weaker demand in the wake of escalating trade tensions between the US and China.

Impact of Retaliatory Tariffs

The immediate cause of the downturn was the implementation of Chinese retaliatory tariffs on US imports. These measures have not only heightened fears of a prolonged trade war but also led to accusations from Chinese officials, who claim the US is using tariffs "as a weapon". This comes after President Donald Trump's decision to increase duties on Chinese products to a staggering 125%.

Market Reaction

By 7:46 am ET, WTI for May deliveries had plunged by 3.24%, trading at $60.33 per barrel. Shortly thereafter, Brent for June settlements saw a 2.99% decline, with prices dropping to $63.53 per barrel. These figures underscore the market's nervous response to the latest developments in the US-China trade dispute.