Oil Futures Hit Hard by Trade Dispute

Investors' caution in the face of escalating trade tensions between the United States and China, the world's largest oil consumer, has led to a significant drop in oil futures prices. The situation worsened as China implemented 84% reciprocal tariffs on American goods, raising alarms over potential demand reduction.

China Criticizes US Tariff Strategy

Chinese officials have condemned the US government's approach to tariffs, describing them as being used "as a weapon". This criticism follows President Trump's decision to increase tariffs on Chinese products to 125%, a move that came shortly after a previous hike to 104%.

Market Reaction

By 10:08 am ET, West Texas Intermediate (WTI) for May's deliveries had plummeted by 5.57%, trading at $58.81 per barrel. Similarly, Brent for June's settlements saw a 5.24% decline, settling at $62.12 per barrel.