Global crude prices crashed by 6 percent on Wednesday as the tariff war between the United States and China escalated.
OilPrice.com data showed that WTI crude futures slumped by around $4.01, or 6.7 percent, to $56.06 per barrel, while Brent tumbled to $59.33 per barrel as at the time of filing this report.
The drop is the lowest crude price decline since February 2021.
The development comes as US President Donald Trump on Wednesday confirmed the 104 percent tariff on Chinese imports.
In a tit-for-tat, China slammed 84 percent on US goods in response to Trump’s tariff. Beijing said China’s tariffs take effect on April 10.
The tariff war between the US and China had sparked concerns among traders, worried that the world may descend into a full-blown trade war that will trigger a recession, hitting crude oil demand.
Recall that the Organisation of Oil Producing Countries, OPEC+, recently agreed to accelerate output in May, which will bring more oil to a market that was already facing a surplus.
