Oil prices fell to their lowest levels for four years on Wednesday after China announced an additional tariff for American goods in retaliation for President Donald Trump’s policies.
China has revealed that it will impose a 84 % tariff on American goods, up from the previously announced 34 %, which greatly affected market morale.
By 1153 GMT, Brent Valst decreased by $ 4.02, or 6.40 %, to $ 58.80 a barrel, while crude raw materials in West Texas intermediate fell $ 4.03, or 6.76 %, at $ 55.55. Both decades witnessed losses of about 7 % before recovering partially.
Trump’s tariff also entered 104 % on Chinese goods, early on Wednesday, adding pressure on the markets because it reflects the ongoing tensions between the largest economists in the world. In response, the European Union countries were expected to agree to its first anti -retaliatory measures, as it joined China and Canada to return to the customs tariff.
The escalation of commercial tensions has sparked fears of the global economic slowdown, with the oil market in particular weak. The latest customs tariff also contributed to the low demand for oil, which is expected to affect the growth of oil consumption in China, which may affect oil prices more.
In addition to the definitions, the OPEC+ producers’ decision to increase production by 411,000 barrels per day in May added concerns about increasing the supply in the market, which prompted oil prices to a decrease.
As oil prices continued to slip, the price of the ESPO mix in Russia decreased to less than $ 60 a barrel for western prices for the first time on Monday. In a more positive note, data from the American Petroleum Institute showed that US crude stocks decreased by 1.1 million barrels per week ending April 4, contrary to construction expectations in stocks.
The official US inventory data is expected to be from the Energy Information Department later on Wednesday, providing more ideas about market trends.